The Note was Samsung’s push into the Android phablet market. And it seems that it was quite a success.
But last year, the Note mysteriously vanished from Samsung’s lineup.
Why?
According to Anisha Bhatia, senior analyst at GlobalData, it wasn’t because of decreased demand or changing priorities: It all came down to supply chain issues.
“A combined Ultra and Note was widely expected after Note phones disappeared from Samsung’s line-up last year,” writes Bhatia. “Continued remote working has seen consumers rely heavily on their smartphones and expect more out of them. Merging these two phones allows Samsung to navigate ongoing supply chain and component shortage issues, as well as address a growing category of users who demand high productivity combined with entertainment from their devices.”
It makes sense.
Combining two lines allows Samsung to simplify its component procurement and manufacturing line. It’s also less confusing for users to navigate which phone to choose from the brand.
What about sales? Well, it seems like Samsung might have a trick up its sleeve.
Carrier promotions.
Aggressive promotions.
“Aggressive carrier promotions amounting to $1,000 off the sales price will make the flagship phones nearly free, helping them gain sales traction,” says Bhatia.
That’s interesting: Here we have a high-end manufacturer needing to resort to aggressive promotions to sell a flagship handset.
It will be interesting to see how successful a technique this will be for Samsung.
Only time will tell.
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