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Samsung plans to maximize Galaxy experience and avoid cost reduction in 2023
Samsung holds a global meeting to discuss its business strategies for 2023. In this meeting, the company revamped its smartphone strategy. For 2023, Samsung plans to maximize the Galaxy user experience instead of focusing on smartphone cost reduction.
An exclusive information via IT Science suggests that Samsung has finally considered giving up its current cost reduction strategy and planned to return to the normal route to intensify the functions customers want through the optimization of semiconductors for high-performance smartphones.
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The new strategy suggets that the company aims to narrow the gap with Apple in the premium smartphone market and regain the trust of consumers.
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Samsung Electronics Vice Chairman Han Jong-hee ordered at a DX (Device Experience) division management meeting held last month that all departments should think of ways to strengthen the rivalry of smartphones without falling into the trap of cost reduction.
Meanwhile, in reacting to this remark, a Samsung Electronics official said, “Cost reduction is something that even latecomers like Chinese companies can do without difficulty.”
The company analyzed Vice Chairman’s order as an expression of his desire to overcome the ‘sandwich’ situation where Apple escapes and Chinese companies chase.
Samsung has focused on achieving profitability through cost reduction since mid-2010. A typical example is that the company is targeting the emerging market with mid to low-priced smartphones come under the Galaxy A series.
But over the years, Chinese smartphone makers, like Xiaomi, Oppo, and Vivo, made rapid advances in hardware, which weakened Samsung’s unique marketing strategy.
At the same time, American company Apple is fighting a tough battle in the premium smartphone market. Apple had 57% of the global premium phone (over $400) market share and Samsung has 19% in the third quarter, according to market researcher Counterpoint Research.
Although Samsung’s foldable phones are receiving positive reviews, they account for only 1% of the total market. It suggets that Samsung would cede the number 1 market share in the entire smartphone market beyond the premium market to Apple in the fourth quarter of this year.
New Galaxy Optimization AP Development Team –
Vice Chairman Han’s order reflected an organizational reshuffle of Samsung made earlier this month and regular personnel matters to think of ways to strengthen product competitiveness rather than cut costs.
The MX (Mobile Experience) division, which is in charge of smartphones established a new AP solution development team through organizational restructuring. An application processor (AP) is a semiconductor that plays the role of the brain of a smartphone and is considered a key component that determines the performance of a product.
The information says that the AP Solutions Development team will be in charge of prior art development, performance analysis, and commercialization related to AP. This team is expected to be in charge of developing customization solutions for APs going to Galaxy.
Samsung is reviewing LockStar for Galaxy S24 AOD customization. The Korean community’s moderator confirmed that the latest flagship phones don’t support personalization of the always-on-display using Good Lock’s LockStar module.
Thanks to the new screens, Samsung’s Galaxy S24 series brings an iPhone-like Always On Display feature. However, the company seemingly missed bounding it with Good Lock for customization. As a result, users are facing issues tweaking it through LockStar.
However, the latest input confirms that Samsung is considering LockStar support for Galaxy S24 AOD. This will allow users to renovate the always-on-display functionality on their device in various aspects including removal of certain elements.
LockStar doesn’t support AOD customization in the Galaxy S24 series. While an internal review is underway, a possible release may happen shortly. Meanwhile, the moderator hasn’t shared any specific timeline regarding the availability of the support.
Good Lock’s LockStar is one of the most popular plugins for Galaxy customization. Not only the lock screen, the LockStar also lets users tweak the AOD function. The suite will likely add support for the newly released phones well before July Unpacked.
Image: Samsung Community
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Huawei is making a stunning comeback in its home ground. The company scored a 70% year-on-year growth in its smartphone sales in China in the first quarter. At the same time, sales of Apple dropped by over 19%, reports Counterpoint Research.
The report highlights that the Chinese phone maker is set to outpace Apple in China. As Apple is already facing heat, it’s alarming for all smartphone vendors including Samsung. After Apple, Huawei’s next target will be Samsung which leads the Global market.
Huawei, which was at 9.3% in the first quarter of 2023, jumped to 15.5% in Q1 this year. Apple led the Chinese market in 1Q23 with approximately 20% market share slipped to 15.7% in the first quarter of this year, dropping to the third spot in China.
Earlier, IDC pointed out that Apple is facing a market decline as it lost momentum in China. The local government’s push for local vendors is also helping Huawei to eat Apple’s market. Well, Vivo and Honor were the top two brands by market share.
“Apple’s sales were subdued during the quarter as Huawei’s comeback has directly impacted Apple in the premium segment,” said Ivan Lam, senior research analyst at Counterpoint.
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Apart from mobile, Samsung is also focusing on the PC market. The company has recently launched its new all-in-one PC “All-in-One Pro.” At the event, the VP of Intel Korea Samsung Business Division announced the intention to work with Samsung for the AI PCs market.
Galaxy AI is a hit, helping Samsung sell the Galaxy S24 series worldwide. The Korean tech giant is also bringing AI capabilities to its laptop line. Compared to smartphones, laptops, and PCs would offer way better AI features and abilities to bolster productivity.
Samsung’s All-in-One Pro features Intel’s Core Ultra AI PC processor CPU. Thanks to Intel’s external GPU, Arc, graphics performance in the all-in-one PC has also improved twofold compared to the previous generation, and power efficiency has been improved by 25%.
“In this trend where AI is present everywhere, the PC is the product that we experience directly and use for production activities,” stated Bae Tae-won.
As far as AI features are concerned, Intel is committed to offering a complimentary “AI Creator App Package” that consists of the Luminar Neo photo editing software named “Affinity” as well as the Magix video editing application “Vegas.”
Apart from Intel, Samsung also partnered with Microsoft to bring a dedicated Copilot key to the wireless keyboard of the All-in-One Pro PC. Such kind of collaborations offer deeply enhanced user experience as accessing AI-powered Copilot is just a keypress away from you.
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