Samsung Electronics announced plans recently to release an economy smartphone for under $200, or around 220 thousand won, as early as the second half of this year. With Apple, too, rushing to prepare for an emerging market campaign based on an economy iPhone model in order to maintain its current growth curve, observers are predicting another battle between the two companies over the economy smartphone market. Smartphone prices are expected to fall from the 600 thousand to 800 thousand won range to the 200 thousand to 300 thousand won range.

At a meeting of Samsung Group affiliate presidents Wednesday morning at the Samsung Electronics office in Seoul’s Seocho neighborhood, Samsung Electronics executive vice president of global product strategy, Hong Won-pyo, delivered a report on “The Smartphone Revolution and the Tasks Facing Us” in which he announced plans for strengthening the company’s grip on the premium smartphone market and taking over emerging markets with economy smartphones costing under $200, as reported by future strategy unit vice president of communications, Rhee In-yong, who attended the meeting.

While no firm date was set for a launch, Hong said the strategy would enable Samsung Electronics to “quickly catch up with Apple to become a ‘global smartphone leader.’” Hong added that the company could go from being a “fast follower” in the smartphone market to a “first mover.”

The move presages a change in strategy from the company, which has primarily focused on premium smartphones. The shift in Samsung Electronics‘ attention toward the economy smartphone market is based on the determination that while the rate of increase in premium markets like South Korea, the United States, and Europe is dropping off as usage rates rise, smartphones are still in the distribution stage in emerging markets like China, the Middle East, Africa, and South America.

An analysis by the company put the percentage of smartphones out of the entire mobile phone market at 80 percent in South Korea and 49 percent in North America and Europe, compared to only 16 percent in Central and South America and 14 percent in the Middle East and Africa.

The company plans to introduce a smartphone for under US$200 at the IFA trade show in Berlin, which begins on Sept. 2.

“There is a good chance that among the smartphones appearing at this show, the Gallery Y, a Galaxy series model with an Android operating system, will be selling for around $200,” said a Samsung Electronics official, adding that an economy model would also be included among the “Wave” series using the Bada operating system.

Apple also appears to set to make inroads on the emerging market with an economy iPhone. Foreign media reported Wednesday that the company is currently preparing an economy iPhone 4 for released as early as September or October. The economy version will be priced lower than the iPhone 4, with a reduced memory capacity of eight gigabytes.

Apple is already known to be discussing low-cost iPhone supply measures with China Mobile and China Telecom. Industry observers are predicting that due to limits on Apple’s ability to reduce the price of its iPhone 4, it may release a separate low-cost smartphone in the $150 to 200 range.

But it is not clear whether the Galaxy Y and iPhone priced at under $200 will be released in South Korea during 2011. A Samsung Electronic official said, “A smartphone priced at under $200 is not right for the South Korean market, and the mobile communication companies do not want it either.”

“For the time being, a South Korean release looks unlikely,” the official said.

Meanwhile, a district court in the Hague on Wednesday issued a preliminary injunction banning the sale of some models of Samsung Galaxy smartphones in the Netherlands, ruling that they breach a patent owned by Apple. According to the court, the injunction will take effect from Oct. 14.

However, the court rejected nine of ten Apple’s complaints.

Please direct questions or comments to [englishhani@hani.co.kr]