Samsung has been having a hard time staying afloat in the last few quarters, for its profits have started to dwindle. Therefore, in the process of agitating against the confinements of competition and declining profits, Samsung has resolved to reduce the number of smartphones that it launches, and that too by a significant margin of 30%.
Although, there is not one tad bit worth of doubt that Samsung is one of the most brilliant consumer electronics manufacturer, even Samsung can feel insecure against the rise of other Chinese firms, such as Xiaomi and OnePlus, and not to mention the already competitive Apple, and other well-established manufacturers. Once the rising brands plant concrete feet in international markets, established brands like Samsung and Apple are bound to feel their profits and market share being eaten away.
In order to combat the neck-to-neck competition in the future, Samsung has decided to shake some structures for the long run and cut down the losses it has recorded in smartphone sales in the last few quarters.
In light of Samsung’s plans, Samsung has decided to launch a fewer number of cellphone models and concentrate the resources on the fewer models instead of having to scatter its resources. Walls Street Journal has reported that according to Samsung’s head of investor relations, Robert Yi, Samsung will cut down the cell phone models by 25% to 30%.
Moreover, the announcement by Robert Yi was soon corroborated by a spokesman of Samsung, which has left little to no doubt that we shall see fewer models next year released under Samsung.
Samsung’s plan seems to be quite well-thought-of as it seems the best way for competing with rising Chinese manufacturers that sell devices that sport the same specifications, but are built at much lower prices.