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Horace Dediu Analyzes Samsung’s Marketing Spending, Confirms It’s Really High

Samsung Electronics Marketing Expenses

Image Credit: asymco

In a recent analysis of Galaxy Note II sales numbers, we speculated Samsung’s largely successful marketing campaign was helping it overcome the traditional problems associated with selling t’weener devices. In “The cost of selling Galaxies,” a recent post over at asymco, Horace Dediu analyzed Samsung’s sales numbers and found a strong correlation between marketing spending, a combination of advertising dollars and other forms of promotional spending, and growth in handset sales. As you can see from the chart above, Samsung’s marketing budget dwarfs the advertising budgets of other large technology companies. The strategy’s working for Samsung, but it comes at a price—the Korean electronic giant’s handset profit margins, while high, are not as high as they could be. Be sure to check out the source link for an in depth look at Samsung’s advertising budget and the affect it has on the handset market.