Copy Cat Galaxy Core 2 Shows The Flaw In Samsung’s Low-End Strategy

The Samsung Galaxy Core 2 is the newest smartphone in the repertoire of Samsung Electronics Co. (KRX: 005930) smartphones, but this latest attempt to attract budget smartphone buyers doesn't offer them much that the big Korean manufacturer hasn't already made available. The new device went on sale Tuesday with a retail price in India of Rs 11,900 ($198).

Many manufacturers are trying to appeal to mid-range and low end market, which is something Samsung has been doing for years. However, many of the Korean manufacturer’s smartphones outside of its flagship Galaxy S and Galaxy Note lines are devoid of any innovation in design and features to attract a great deal of consumers.

Just last month, Samsung announced the Galaxy Ace 4 and the Galaxy Young 2, which include relatively the same features as the Samsung Galaxy Core 2. Among the Galaxy Core 2’s most notable features are its fairly powerful 2000mAh battery and its Android 4.4 KitKat operating system. Otherwise, its processor speed, memory and camera are the same as what other Samsung smartphones have.

Samsung’s recent second-quarter earnings revealed a sharp drop in revenue for the manufacturer, which could be signaling that its current strategy -- marketing as new and improved smartphones that are new but not exactly improved -- is no longer lucrative.

Meanwhile, other manufacturers are now aiming to bring devices with more attractive specifications down to the mid-range and low-end market. In June, Google Inc. (NASDAQ:GOOG) announced the Android One; to be priced at under $100, Google promises a quality design for the upcoming smartphone that also include features pertinent to developing markets such as Dual SIM support, SD card support and FM radio. HTC Corp. (TPE: 2498) recently launched its HTC Desire 616, which stands as a more affordable version of the Taiwanese manufacturer’s flagship HTC One (M8).

In order to keep up, Samsung will have to realize the value in providing as much quality in its low end devices as it does with its flagships.