"According to our review, IDC's data is far from reality. In every review we conducted, we're the leading manufacturer in Israel. For years, Samsung has been the market leader, and IDC should check its data," Samsung Israel mobile division manager Kobi Kalif told "Globes" in response to a study which found that Apple Inc. (Nasdaq: APPL) outsold Samsung Electronics Co. Ltd. (KSX: 5930; LSE: SMSN) in the first quarter of 2014 in Israel.
Tablets are another category in which you're going head-to-head against Apple. How do you see this category?
Kalif: "We should work harder in this category. We're now launching a number of new models and we'll expand our foothold with marketing campaigns."
In the next two weeks, Samsung will launch several new low-cost smartphones for NIS 1,000-2,800. "We see that the NIS 2,000 smartphone market is growing," says Kalif. "People are seeking to replace handsets like the Galaxy S3 with a newer, cheaper model."
Kalif previously worked for Motorola Mobility Israel, until it was sold to Google Inc. (Nasdaq: GOOG), which later closed Motorola Mobility operations in several counties, and he joined Samsung. He is considered the man who was behind the new contract with Samsung importer Suny Electronics Ltd. (TASE: SUNY), controlled by Ilan Ben-Dov. In February, the two companies signed a new six-year franchise agreement, under which Samsung Israel would sell devices directly to Israeli carriers Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), and Pelephone Communications Ltd., and Suny would forego its marketing exclusivity to retailers, which Samsung estimates accounts for 30% of sales.
Why did Samsung decide to give Suny a substantial part of its Israeli business?
"In 2012, Israel underwent far-reaching regulatory changes (the law to ban affiliation, which forced carriers to provide services to handsets they had not sold -T.H.) Samsung is committed to adapt to the new policy, with the goal of lowering prices and providing the best service to the Israeli consumer. Our objective is to focus on the open market, which is growing. We have an excellent supplier (Suny), and we want to focus its efforts."
Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2014
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