Samsung Electronics' launch of large-sized Galaxy Mega family smartphones for the US$400-600 segment will affect sales of comparable models launched by China-based branded vendors including Huawei, ZTE, Lenovo and Coolpad, according to industry observers.
In the Taiwan market, the Galaxy Mega 5.8, which comes with a Broadcom 1.4GHz dual-core processor and a 5.8-inch qHD display, is priced at NT$13,900 (US$460), while the Galaxy Mega 6.3, which is built with a Qualcomm 1.7GHz dual-core CPU and a 6.1-inch HD Super Clear display, is available at NT$16,900 (US$560), indicated the observers.
As a result, Huawei, ZTE, Lenovo and Coolpad are likely to be forced to switch their market strategies to focus on the sub-US$300-400 segment for their large-size models, said the observers.
The increasing price competition will drive down the retail prices of smartphones with a display of over 5-inch to around US300-400 soon and continue to fall in the second half of the year, commented the sources.
However, due to increasing popularity of larger display models, branded vendors including HTC, Sony Mobile Communications and LG Electronics are expected to continue rolling out flagship models for the large-size segment, said the sources.
Sony Mobile is scheduled to unveil its new flagship model, the Xperia ZU, before the end of June. The Xperia ZU will come with a 6.44-inch Full HD display powered by a Qualcomm 2.2GHz quad-core Snapdragon 800 processor.
HTC and LG both are expected to release their new large-size flagship models with display sizes of over 6-inch in the third quarter of 2013, when Samsung is likely to roll out its next-generation Galaxy Note, indicated the sources.
Article translated by Steve Shen
