No more price wars for Samsung, as company 'harps on' profitability

NEW DELHI: The onslaught of Chinese smartphone makers may seem to have made Samsung rethink its market strategy. A Samsung executive told KoreaTimes, "We have been seeking growth in terms of shipments for years. Samsung is preparing for the post-smartphone era and that's why our handset unit has identified profitability as a priority over growth."

The executive, however, reiterated that the focus on profitability nowhere means that the company will let the rivals steal away with its marketshare. "Samsung will keep the company-set share according to markets. We will launch promotional campaigns if we have to. But the company will be unlikely to initiate cash-intensive promotions to clear inventory and increase market share," the executive told the Korean daily, one of the three oldest English newspapers published in the country. 

The executive told the paper that the company has already intimated the investors about its new strategy.

The smartphone major's first-quarter earnings surpassed analysts' expectations, as its latest flagship S7 smartphone made a strong start. The company's marketshare too went up globally during the year according to the latest research by industry tracker Strategy Analytics.

The company enjoyed 24.1% of the world's smartphone market in the January-March period in terms of revenue, a slight increase from 21.9% posted in Q4 of 2015.