Note 20: How do you sell a $1,000 phone during a pandemic? |
Posted: August 10, 2020 |
SamsungVirtual sales pitches and consultations. Touchless in-store device demos. Deals galore. Those are just some of the plans in Samsung's playbook for selling phones during a pandemic. Last week, the South Korean electronics giant unveiled the Galaxy Z Fold 2 alongside the $999 Note 20, the $1,299 Note 20 Ultra, the $649 Galaxy Tab S7 tablet, the $399 Galaxy Watch 3, and the $170 Galaxy Buds Live earbuds. Samsung has already begun taking preorders for the new Notes. Orders will ship to arrive on or around Friday, Aug. 21.
Samsung hasn't yet detailed pricing or availability for the Z Fold 2 but said it will share more information on Sept. 1. The first generation of the device cost $1,980 and came with 4G in the US. The new model packs in 5G connectivity across the three major US carriers, a glass screen, and a redesigned hinge, all of which could make it even more expensive.
Samsung, which recently lost its crown as the world's biggest phone maker to Huawei, is launching its new devices in a tough environment. Instead of facing a strong market for phones, with 5G and foldable screens getting people to upgrade their devices, most handset makers are seeing lower demand amid the raging coronavirus pandemic. Millions of people are out of work, hundreds of thousands have died and regions around the globe continue to battle a seemingly unending surge in infections. Consumers are opting for less expensive devices, saving their money altogether, or spending their cash on PCs and other work-from-home and entertainment supplies.
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Samsung's task with its new lineup is finding buyers willing to fork over a grand or two during a pandemic and recession. The new products were designed before the novel coronavirus spread around the globe, which meant Samsung couldn't tweak the Note 20 or its other new devices to address the pandemic.
What it could do, though, was change how it goes about selling the Note 20 and the Note 20 Ultra, Drew Blackard, vice president of product management for Samsung Electronics America, said in an interview ahead of the launch event.
"It was a bit more of how you react to the current situation as opposed to the kind of retool everything that you're doing," Blackard said. "Even though we couldn't change the device, we very much rethought how we go to market."
That includes those virtual consultations that'll make the online buying interaction more like the in-store experience. Touchless digital demos will give in-store shoppers a glimpse into the Note's features, right from their own devices. And Samsung is exploring ways to tailor its future products and services to the needs of people who are largely stuck at home, like making it easier to track fitness and stay healthy while quarantining.
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