12/19/2008 2:26:00 PM
Samsung cleaning up in the prepay market with strong push
Samsung has claimed three of the top four prepay sellers in the run-up to Christmas in a bid to reinforce its position as the number one manufacturer in the UK by volume.
The three devices – the J700, E250 and G600 – are selling over 100,000 units in total every week. Sales have been bolstered by the Tocco and U600 handsets, which are also bringing in strong prepay sales.
It is a radical departure from Samsung’s previous reluctance to compete in the prepay market, and marks a new strategy to fight harder for market share.
The manufacturer has cut its prices in a bid to hit key prepay price points with operator subsidy – £100 in the case of the G600 and below £30 for both the J700 and E250. The U600 is being pushed below £50, and Samsung has even gone as low as £10 with the B130.
The manufacturer has seen its share catapult from 19% at the start of 2008 to over 30% as the year closes.
UK vice president for mobile Mark Mitchinson said: ‘Traditionally we have taken the decision not to compete too aggressively over the golden quarter for a number of tactical and company confidential reasons. That said, I did predict at the start of this year that we would look to increase our presence across all segments in our drive for market share, without compromise.’
Samsung is thought to have been frustrated last year, believing that it did not compete hard enough on prepay, allowing the likes of the LG Chocolate to take a share.
The manufacturer is keen to open up its lead with rivals next year.
Mitchinson (pictured) added: ‘Our product lifecycle planning and extensive product portfolio, along with magnificent support from our customers, has given us the opportunity and momentum to carry us through the Christmas period into a challenging but exciting year ahead.
‘We won’t let the financial crisis go to waste. We’re established in the prepay market and we’re here to stay.’
Rivals have suggested that Samsung’s share surge has come at the expense of profits with the theory that the manufacturer is taking share but surrendering profits on some of its low-end deals. Samsung has consistently refuted this assertion.