Profits are down, so Samsung is making plans to streamline their product offering in an effort to get the company’s financials back on track. Selling fewer smartphone models will be Samsung’s primary cost-cutting measure, reducing their current line-up by 25%-30% overall. This news comes on the heels of the heads up given to investors that the upcoming financial results will show a considerable 74% drop in mobile profits during the third quarter of this year.
While it may seem like a huge loss, it’s actually about time (with a seemingly endless array of available devices, like their flagship Galaxy S5, Galaxy Note 4, Galaxy S5 Active, Galaxy Note Edge, Galaxy A3, Galaxy A5, Galaxy S5 Mini, Galaxy Alpha, and more)!
If successful, Samsung will find its way back to a double-digit percentage margin:
Less hardware diversity means being able to share more components across devices (particularly in the mid-to-low-end models), allowing Samsung to maximize profits while they “further leverage economies of scale.”
Fewer smartphones should also make it easier for consumers to decide which device they want (not to mention making it more clear when their existing device is out of date and in need of an upgrade).
Now before people worry too much about Samsung as a whole, don’t forget that they have a lot of other irons in the fire.
Samsung Plans to Make Fewer Smartphone Models in 2015 is a post from: Good e-Reader
Tuesday, November 18, 2014
Samsung Plans to Make Fewer Smartphone Models in 2015
at 3:28 AM