Samsung Electronics Co. Ltd. (LON:BC94) (KRX:0059935) just launched the 24k Gold Galaxy Note 4 smartphone in Vietnam and it retails for $2000. Each piece of precious metal was covered in gold in a process that takes four to five hours of continuous work per unit.
Samsung’s introduces more upscale version of Galaxy Note 4
It takes about VND 24 million or $1100 to make but that price does not include the cost of the Galaxy Note 4. Interested buyers will have to purchase the phone for an extra $900 billion.
Samsung has lost about one-third of total value within the past year. Although the company remains the world’s largest smartphone maker, it’s mobile business is shrinking fast. In early October, Samsung warned its third quarter operating profits would be down a significant 60% from the same quarter in 2013.
Samsung offers a wide range of smartphones in various price points, however it’s more expensive models face less competitors and offer better price margins. According to recent report from Motley Fool, Samsung will have to put a focus on the Galaxy Note 4 and Galaxy Edge phones if it wants to remain relevant in the smartphone market.
Samsung’s battle with Apple
Apple Inc. (NASDAQ:AAPL) is Samsung’s top competitor. The two phone makers have always been in competition with each other, but for a long time the latter continued to dominate the phablet market with a high-end phone. Now that Apple entered the game with the iPhone 6, Smartphone buyers are not limited to one brand.
The iPhone 6 Plus is almost as big as the Galaxy Note 4 and it’s even priced similarly. Apple launched a record debut weekend for both new phones last month. Although the company didn’t bother breaking down the sales for the iPhone 6 and iPhone 6 Plus, the company’s CEO Tim Cook claimed Apple is selling everything they make and the overall demand for the new phones is quite outstanding.