According to a South Korean publication, Samsung is considering introducing a new premium smartphone brand to exist alongside or replace the iconic Galaxy brand. E-Today.
The potential rebranding effort is reportedly aimed at differentiating Samsung’s high-end devices from its lower-priced offerings. Currently, the company’s Galaxy products range from the entry-level Galaxy A and M series phones priced between $100 and $200 to the premium Galaxy S flagship and foldable Galaxy Z that cost over $1,800. span.
Industry analysts have suggested that a single brand’s wide price range could dilute the premium feel of Samsung’s high-end devices. It is thought that if consumers associate the Galaxy name with budget-friendly options, it will become more difficult for Samsung to position its flagship device as a direct competitor to Apple’s iPhone in the premium segment.
In comments at CES 2024 in January, Lee Yong-hee, Samsung’s head of global marketing, hinted at a possible brand strategy, saying, “Galaxy has so many lineups that we’re looking for an innovative shift.” “It’s understandable that people would expect a new name when the dot arrives.” said Lee.
It’s unclear what Samsung considers an innovative shift, but such an initiative would likely incur significant marketing costs. The news comes as the company faces increasing competition from Apple in the premium segment, especially among younger consumers. For example, a recent Gallup Korea study found that 64% of South Korean consumers in their 20s use an iPhone, and that number rises to 75% for women in the same age group. .
Industry observers liken this potential strategy to Hyundai’s successful launch of its Genesis luxury brand. Genesis, launched in 2015, reached 1 million units worldwide by August 2023, contributing to the improvement of Hyundai’s brand image and profitability. Although Samsung has not revealed the specific alternative brand name, it is reportedly conducting an internal study to evaluate the advantages and disadvantages of introducing a new premium brand.
