Samsung Mobile Channel Chief Mike Coleman On Unlocking 'Explosive Growth' In The Channel And Partner Recruitment For 2018
Are partners getting margin on the devices?
Absolutely. We have to make sure there's margin in it for the partners. I call it the circle of margin. The device itself has a certain margin threshold, which is moderate, I'll call it. But when you start to surround it with things like accidental damage for screen fixes, extended warranty, you put a case on it, you put EMM on it for mobility management. Then you can either sell it as a package, or as a service. The more stuff that you wrap around it, that circle of margin, obviously the richer the margin is. We've seen partners that do that well and succeed in that. And those that want to sell it as a service can do some really interesting things, because they incorporate the individual value into the price per month. So you're selling a device-as-a-service with a menu of options that they've selected, and all of a sudden they have a recurring revenue stream. And at the end of a two-year cycle, they refresh. And they've built themselves a recurring revenue stream with the phones, with the tablets, with the wearables. We also engineered programs from an MDF perspective--volume incentive rebates which we've put in place for many of our products. We have a [program that] allows them to look for opportunity for multiple unit volumes. So I'm very mindful of how they make money with us.