Samsung Electronics Co Ltd released two mid-tier with high-end design as it created to provide a riposte to its cheaper cost Chinese competitors and regain its title to be the biggest smartphone brand in the market.
Samsung's smartphone woes started in the latter part of 2013 and continued by July-September, with its international market share down on the third straight quarter and its scraping low profit during in three years.
The company competes for the market in China, the largest smartphone market in the world, where Samsung was deposed by Xiaomi Inc, a local upstart company, as the top smartphone manufacturer in the 2nd quarter. It does not support the lower-end products of Samsung are too costly and not enough to distinctively compare to those hyped by Lenovo Group Ltd and Xiaomi.
The Galaxy A3 and A5 are viewed by analyst as the first counter strike of the Korean company. Primarily releasing in China in November, they will be first devices in Samsung to fully feature its thinnest and metallic bodies of smartphones to date. The A3 and A5 size can be compared to Galaxy S5 which is one of the high end smartphone of Samsung, although of lesser resolution quality of the screen. Kim Hyun-su, Seoul Based IBK Asset Management Fund Manager, who hold the said company shares, "I think improving specs on the mid-tier products by using features like a full metal body is something that Samsung needed to do to respond to the Chinese rivals."
The Korean company identified the new phones as mid-tier, and explained they will be released in other chosen markets, they did not disclose the price yet.
The announcement, incorporates with hopes for bigger dividends and earnings recovery, urged Samsung's shares in Seoul to the largest close in more than a couple of months. The stocks have earned 10% since today.
