SEOUL, KOREA - Samsung Electronics cast a doubt about the global competitiveness of Xiaomi which is a rising star in China’s smartphone market.At the Samsung Investors Forum 2014 held in New York on November 17, Lee Myung-Jin, executive director of investor relations at Samsung Electronics, said, “The profitability of Xiaomi is mysterious.”
He added, “There should be something more than Internet sales. I doubt if such a strategy could pay off in non-Chinese markets.”
Samsung Electronics is facing difficulty in price competition with China’s smartphone makers. Lee stressed, “Despite so, we are doing our best to overcome the difficulties. What matters most for low-priced smartphones is the price itself. It is difficult for Samsung to have an advantageous position in price competition.”
Lee emphasized that Samsung will focus on strengthening its price competitiveness by reducing the number of smartphone models next year.As for questions regarding Samsung’s dividend policy, he said, “It is difficult to give accurate answers at this moment.”
Article provided by The Korea Economic Daily
