According to a report by South Korean publication E-Today, SAMSUNG is considering a major change in its brand strategy to better compete with Apple’s iPhone in the premium smartphone market. Industry insiders reveal that the tech giant is exploring the possibility of introducing a new high-end brand to improve its image and attract more affluent customers.

Samsung aims to improve its brand image

Since 2009, Samsung has been using the “Galaxy” brand on all its smartphones, from budget models to flagship devices. However, such a broad approach may have weakened the premium perception for higher-end offerings. Despite its leading position in global smartphone shipments, Samsung has struggled to maintain its position in the lucrative premium segment where Apple’s iPhone reigns supreme.

The idea behind the new brand is inspired by the success Hyundai has had with its luxury car line, Genesis. Launched in 2015, Genesis quickly became the leading premium brand and significantly increased Hyundai’s reputation and profitability in the market. Samsung hopes to repeat this success in the smartphone industry.

At CES 2024 in Las Vegas, Samsung’s global marketing chief Lee Young-hee hinted at a potential rebranding. He acknowledged that the vast Galaxy lineup, which includes everything from feature phones to mid-range devices, could confuse consumers and dilute the premium appeal of flagship products.

Recent surveys underscore the growing preference for the iPhone among young consumers. For example, a study by Piper Sandler found that 90 percent of American teenagers use iPhones. A Gallup poll in Korea found that 64% of young people aged 18-29 prefer iPhones, with this rate rising to 75% among young women. These statistics underscore the challenges Samsung faces as it tries to attract the next generation of smartphone users.

To address this issue, Samsung is conducting internal research to assess the feasibility of launching a new brand. This initiative includes analysis of potential market impacts, marketing costs, and long-term benefits. While the company is considering this strategic move, industry experts believe that introducing a separate premium brand could help Samsung regain its competitive edge and gain a stronger position in the high-end smartphone market.