Samsung Considers Dropping Iconic 'Galaxy' Brand for Flagship Phones
Samsung is considering introducing a new premium smartphone brand that would exist alongside or even replace its iconic "Galaxy" branding, according to Korean publication E-Today.
The potential rebranding initiative reportedly aims to differentiate Samsung's high-end devices from its budget offerings. Currently, the company's broad use of "Galaxy" spans from entry-level Galaxy A and M series phones priced around $100-200 to premium Galaxy S flagships and Galaxy Z foldables that can cost upwards of $1,800.
Industry analysts suggest the wide price range under a single brand may dilute the premium perception of Samsung's high-end devices. The belief is that when consumers associate the Galaxy name with budget-friendly options, it becomes more challenging for Samsung to position its flagship devices as direct competitors to Apple's iPhone in the premium segment.
In comments made at CES 2024 in January, Samsung's global marketing head, Lee Young-hee, hinted at the potential branding strategy: "Galaxy has so many lineups that I understand people are expecting a new name when there is an innovative turning point," said Lee.
What Samsung considers an innovative turning point is unclear, but such an initiative would involve significant marketing costs. The news comes as the company faces increasing competition from Apple in the premium segment, especially among younger consumers. For example, a recent Gallup Korea survey revealed that 64% of South Korean consumers in their 20s use iPhones, with that figure rising to 75% among women in the same age group.
Industry observers have compared the potential strategy to Hyundai's successful Genesis luxury brand launch. Introduced in 2015, Genesis reached one million global sales by August 2023 and helped elevate Hyundai's brand image and profitability. Samsung has not revealed any specific alternative brand names, but it is reportedly conducting internal studies to evaluate the benefits and drawbacks of introducing a new premium brand.
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