14 DAY TRIAL // Two of the biggest smartphone makers in the world, Samsung and LG, have expanded their marketing spending last year to address increasing competition on the market. Samsung apparently set aside $10.2 billions for promoting various devices, while LG spent about $1.6 billion on marketing last year.
Samsung spent billions to promote the Galaxy S7 and the late Galaxy Note 7, while after the recall, the South Korean company focused solely on promoting the Galaxy S7 and Galaxy S7 edge as the flagship smartphones.
Some of the marketing budget was also spent on maintaining brand reputation following the discontinuation of the Galaxy Note 7. Obviously, $10 billion was spent on promoting various Samsung products, not just smartphones.
LG increased its marketing spending by 21.4%
Reports from Korea say that LG increased its marketing spending to promote OLED television sets and other products, including the V20. Both companies are expected to continue relentless marketing strategies throughout 2017, especially since they’ve recently announced flagship smartphones. LG G6 was launched about the same time as the Galaxy S8 and LG directed its efforts towards building hype around its latest smartphone.
Samsung is also promoting its Galaxy S8 and Galaxy S8+ smartphones, set to launch on April 21 worldwide. A recent report has revealed that Samsung expects to post record Q2 profits generated by high Galaxy S8 and Galaxy S8+ sales. The South Korean company expects to record a 49% increase in operating profit this quarter, reaching the $11 billion mark.
The figure might surpass the company’s record from Q2 2013, when the Galaxy S4 was announced. In addition, Galaxy S8 and Galaxy S8+ sales are also said to be higher than those of last year’s Galaxy S7 smartphones. It’s clear that Samsung’s mobile division is relying on the Galaxy S8 to recover consumer trust in the company and the financial loss generated by last year’s Galaxy Note 7 fiasco.