The question remains whether Samsung will continue to release products under the Galaxy product line in the future. The tech giant is considering introducing a new high-end brand.
The Galaxy brand name was first introduced in 2009 with the Samsung Galaxy GT-I7500. Since then, all smartphones from the South Korean technology giant have been released under the Galaxy name, in the budget, mid-range and high-end segments, but according to internal sources telling the South Korean publication E-Today consulted, this may change. According to those sources, the South Korean brand is considering introducing a new high-end brand that would compete with Apple’s iPhone range.
Confusing lineup
Samsung’s Global Marketing Head, Lee Young-hee, said at CES 2024 in Las Vegas that the current Galaxy series may be “confusing” for consumers. Currently, the Galaxy range includes budget, mid-range and high-end products. According to Young-hee, this can cause confusion and also weakens the premium look of the Galaxy flagships.
Young-hee further said he understands that “people would expect a new name when there is an innovative turning point.” By this she refers to radical innovations that break with the current positioning of the Galaxy line. It is not clear when such an ‘innovative turning point’ would occur.
The publication E-Today cites Genesis, Hyundai’s premium brand, as an example, which broke through in the American premium segment, while Hyundai is generally not considered a premium brand. Samsung might be considering a similar strategy and, like Hyundai, want to compete with the premium feel that iPhones offer.
Galaxy versus iPhones
In the US, Samsung is losing out to Apple’s iPhone sales in the premium segment. Piper Sandler research shows that 90 percent of American teens use an iPhone. Even in Samsung’s home country of Korea, interest in iPhones is growing steadily: 64 percent of 18 to 29-year-olds now prefer iPhones, and among young women this even rises to 75 percent.
To turn the tide, Samsung could (partly) consider saying goodbye to the Galaxy name for its high-end phones. Yet it seems unlikely that Galaxy as a brand name will disappear completely. This spring, Samsung introduced it Galaxy AIplatform, and the Galaxy product line is very well known: saying goodbye to this name could ultimately do more damage than it benefits.