They do need to make profits. Don't compare Samsung with Chinese brands. Take a look at Oppo and Vivo. They've undergone heavy losses. Xiaomi makes very little profits, if at all, off its phones. They're only surviving because they channel funds from their other businesses into their mobile division. The only way Chinese makers could've succeeded in the market was by offering devices at razor-thin or zero profits. However, that backfired against them, because everybody now expects specs at a cheap price from Chinese makers. If they start hiking prices, bam, people move back to establish brands like Samsung. How well have Xiaomi or Huawei ever done in the higher segment? Not too well. Because, when it comes to spending good money on a phone, consumers go for Apple or Samsung. The only way these companies can stay afloat is in by cutting down drastically on profits and offering specs at a reasonable price. A giant like Samsung won't be doing that.
