Samsung is rethinking how it develops phones and plans to make a significant change in strategy. Moving forward, the company will introduce the newest features to devices at the $400 price point, such as the Galaxy A series, rather than to flagship models such as the Galaxy S or Note. "In the past, I brought the new technology and differentiation to the flagship model and then moved to the mid-end. But I have changed my strategy from this year to bring technology and differentiation points starting from the mid-end," said Samsung mobile chief DJ Koh in an interview with CNBC. The new, cutting edge features will appear on a mid-range phone by the end of the year, according to Koh. Part of the thinking behind this change is due to the slowdown in sales of high-end models, which are too costly for many people. "So we are very much focusing on millennials who cannot afford the flagship," continued Koh. "But how can I deliver meaningful innovation to our millennials? That's the reason I'm trying to differentiate the mid-section." Samsung also needs to find a way to compete with Chinese rivals, including Huawei and Xiaomi, which have a plethora of good phones available at affordable prices.


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