A hostess displays Samsung Galaxy S6 Edge smartphone during the Mobile World Congress. (Photo : Reuters/Gustau Nacarino)
Samsung is selling more smartphones at cheaper prices in an attempt to compete with the bigger influence of low-end rival companies, and last week the mobile phone vendor reported a major year-over-year increase in handset shipments during Q3. The company's high-end mobile devices now make up a smaller percentage of its total revenue, while under-$200 smartphones including the Galaxy J series make up a larger percentage of shipments. However, it is losing market share and sales versus rivals Apple and Huawei.
Cheap smartphones are very popular in emerging markets. The highly competitive sector benefits shoppers who cannot afford or do not want high-priced phones.
Samsung's high-end smartphones made up 40 percent of its total handset sales for Q3. The figure was 55 percent one year ago. Meanwhile, under-$200 phones made up 38 percent of sales, up from 30 percent last year.
Samsung's low-priced Galaxy J lineup has been key to the company's sales strategy. Galaxy J was Samsung's best-selling lineup in Q3, outselling the high-end Galaxy S6 and Galaxy Note series, and mid-range Galaxy A series.
The Galaxy J5 helped the South Korean company recover lost market share in various countries, according to CNET. They include India.
Samsung is still the world's top smartphone company in terms of sales and market share. However, it is facing tough competition.
Bit by bit Apple is taking Android market share. Last year its iPhone 6 pulverized Samsung's newest Galaxy and Note models. Meanwhile, while Samsung shipped more phones than Apple in Q3, Apple's increase in shipments (8.7 million phones) was higher than Samsung's increase (4.6 million phones), according to Business Insider.
In addition, Chinese vendors such as Huawei are staying in the hunt. International Data Corporation (IDC) reported that last quarter its handset shipments surged 61 percent.
Samsung's Q3 revenue rose $4 billion to $45.6 billion.
