6) Samsung brilliantly lays the groundwork through the Galaxy range, SII and the Note 7) S-III unveiled. 9 million bookings give its hope that it has reached the stage where they can command a premium (or at least see if it works) 8) Therefore the Rs. 43,000 price in India as against the expected Rs. 37-38000 9) People will still buy the phone, because unlike other Samsung phones this will give them a feeling of 'exclusivity' – i.e., "Since the price is prohibitively high, only few will have it. I will be one among the few and this will make me feel part of a select lucky few”. This reason will however be rationalised and articulated by such buyers, to others as, "Man, I bought it because it has mind-blowing features and is worth it" 10) In the process Samsung makes a good 30 - 40 % higher margin per phone that it would actually have. In effect, what it loses in volumes it makes up in margins. 11) But the main gain for for Samsung is that they would be finally able to prove that they have what it takes to command a premium and enter Apple’s league and penetrate its bastion, with higher priced models. My personal view: I hope this strategy fails and the S-III is a spectacular flop. Otherwise we customers would be lambs led to slaughter by such extreme-capitalistic greed, shelling out 100% more than what it actually costs the company
Re: My views_part II
by Varun Hegde on Jun 02, 2012 06:27 AM
It is just hype and nothing else. Owning something that costs more is for those who do not know what to do with excess or unaccountable money
6) Samsung brilliantly lays the groundwork through the Galaxy range, SII and the Note 7) S-III unveiled. 9 million bookings give its hope that it has reached the stage where they can command a premium (or at least see if it works) 8) Therefore the Rs. 43,000 price in India as against the expected Rs. 37-38000 9) People will still buy the phone, because unlike other Samsung phones this will give them a feeling of 'exclusivity' – i.e., "Since the price is prohibitively high, only few will have it. I will be one among the few and this will make me feel part of a select lucky few”. This reason will however be rationalised and articulated by such buyers, to others as, "Man, I bought it because it has mind-blowing features and is worth it" 10) In the process Samsung makes a good 30 - 40 % higher margin per phone that it would actually have. In effect, what it loses in volumes it makes up in margins. 11) But the main gain for for Samsung is that they would be finally able to prove that they have what it takes to command a premium and enter Apple’s league and penetrate its bastion, with higher priced models. My personal view: I hope this strategy fails and the S-III is a spectacular flop. Otherwise we customers would be lambs led to slaughter by such extreme-capitalistic greed, shelling out 100% more than what it actually costs the company
Decoding the pricing strategy (Part _ I): 1) Samsung wants be the numero uno smart phone brand 2) It needs to upstage Apple to achieve this 3) It matches and surpasses Apples' tech specs and innovation (or borrowed innovation) 4) But Apple's brand supremacy lies in so called 'higher order benefits' include an exceptional & integrated user experience and not just tech specs. Therefore it's able to command a premium on its models (i.e. prices way above what it actually costs or the industry upper- price benchmarks) 5) Samsung realises that to be compared with Apple in the same breath (and therefore gain legitimacy as a true power brand) it needs to reach a stage where it can also command a premium and not just rely on better tech specs
In the time when everything is so expensive and people are finding it very hard to survive, only a fool or a person with lot of Grandpa's Money will buy this phone.... The phone would be intresting for 5 days and will be used only for making calls and nothing else.,.. So why to waste so much of money just to talk on phone.....
In the time when everything is so expensive and people are finding it very hard to survive, only a fool or a person with lot of Grandpa's Money will buy this phone.... The phone would be intresting for 5 days and will be used only for making calls and nothing else.,.. So why to waste so much of money just to talk on phone.....
Wrong Info - Looks like a paid article from competetors doing Negative publicity
1.cost isnt 43k.its 39k on Flipkart and Ebay,Rs.38900 to be precise
2.Its not 8gb,its 16gb
Get your Facts correct REDIFF,dont just publish any paid article,that is in poor taste and in a way its negative publicity for yourself as well coz it puts a Question mark on your credibility
Re: Wrong Info - Looks like a paid article
by Ramesh M on Jun 01, 2012 09:43 AM
ah..if the price is indeed 38-39k..then Rediff is definitely doing some disservice!
although i dont see any negative publicity (infact it talks of all the good features of the phone)..the pricing of 43k vs 39k does impact "visually"
