Samsung reverts to the power of one

Samsung reverts to the power of one

Samsung Electronics’ telecommunications division will distribute its GSM and CDMA phones through T.Choice after cutting long-term partner Brightpoint out of the equation. The decision ends a three-year working relationship with Brightpoint that was exclusive for most of that time.

“They wanted a niche market player and everybody’s business direction changes, as do their needs,” said Bruce Tomlinson, Brightpoint president, Asia-Pacific.

“The focus our business has on Nokia was a contributing factor. The funny thing is that people think Nokia sells and sells but that is certainly not true – a lot of hard work is needed to create a marketplace for every vendor and you have to allocate the resources to where the returns are. GSM is a very small space.”

Samsung Electronics’ general manager of telecommunications, Chris Grant-Foster, said he had been impressed with T.Choice since it had started selling Samsung products in August.

“We did some work understanding what both companies brought to the table because I don’t think we are big enough to have two distributors,” Grant-Foster said.

“We are looking to build a relationship that is an extension of our sales arm. T.Choice only has Samsung and Motorola as primary brands and is in a better position to develop our channel and communicate the message we want out there. Most distributors carry multiple brands, including Nokia, and we don’t get the mind space.”

Samsung sold more than 250,000 GSM and CDMA handsets in Australia last year and will launch a national roadshow in Adelaide on February 17 to build its brand name as well as giving resellers and retailers a view into its marketing strategy and support schemes. It plans to unveil a new range of three GSM and three CDMA phones during this quarter.

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