Samsung lives a time of changes. Failing to present the Galaxy Note 9, we now receive rumors about structural changes that the South Korean manufacturer would be considering for its basic ranges. Information from MMDDJ, a filter from Samsung specializing in China, tells of the arrival of two new ranges: the Galaxy R and Galaxy P.
These new ranges would join the existing Galaxy On and Galaxy C, but would suppose the cancellation of the Galaxy J series. The latter represent practically the entire range of entry for Samsung in international markets, so it would surprise this movement. In China this series does not have the same repercussion and hence the rumor. We do not know if this cancellation would only be for the Asian market or would occur globally.
Reduce costs by outsourcing manufacturing
China is a difficult market for Samsung. The company has seen how Oppo, Huawei and Xiaomi are growing in sales due to their aggressive pricing policy and need a turnaround. To reorient this position one of the key ranges would be the Galaxy P.
Again according to the Chinese filter, this Galaxy P series would be the first Samsung devices produced by third parties. It is what is known as ODM (Original Design Manufacturer), where the device would be manufactured outside Samsung’s facilities. It is something that many manufacturers that do not have the resources of Samsung perform, but to date all of their mobiles have been designed and manufactured exclusively in their factories. With the Galaxy P this would change.
Samsung would only brand, but they would be designed and manufactured by another company. We understand that, should this move be confirmed, Samsung would closely monitor the external work. We do not believe that the South Korean manufacturer puts its mark on products that have not been originated in its facilities.
This would allow Samsung to reduce costs considerably. The device would be chosen from a catalog of devices, some adjustments would be made and sold as a Samsung device. It is a big change for the company and a priori it would only be oriented to the Chinese market and in the low range. But if the movement works it could open the door to a change of strategy to compete against other brands.
Until the fourth quarter of this year or early 2019 we would not have presented these new ranges Galaxy R and Galaxy P, or what will have to wait to confirm this rumor that as everyone must be taken with patience and skepticism.