Samsung plans to reduce the number of new Galaxy smartphones it launches by up to a third, to streamline its mobile output.
We’ve become well accustomed to seeing a slew of new Samsung devices hit UK shelves every year, but that’s apparently all set to change. According to the company’s Head of Investor Relations, Robert Yi, there are plans in place to “cut the number of models by about 25 per cent to 30 per cent.”
The decision to slash the number of new devices is thought to be motivated by a poor showing in the market and a subsequent drop in third-quarter net profit of almost 50%.
In addition to pruning the amount of devices launched, Mr Yi said Samsung would also be looking to “increase the number of components shared across mid to low-end models, so that we can further leverage economies of scale.”
A number of cheap and cheerful devices, made by companies like Xiaomi, Oppo and OnePlus, have taken a large slice of the Chinese market, so in order to compete with these upstarts, Samsung is having to cut costs and concentrate its efforts more. The sharing of components across its range will offer significant savings in the long term and also hopefully mean better quality low-cost handsets that can compete with the slew of great-value handsets emerging from other players.
While the Galaxy S5 wasn’t quite the stellar seller that Samsung hoped it would be, thanks to strong outings by Apple and HTC, the company is still planning on pushing the boat out with future top-end devices such as the Galaxy S6.
A Samsung spokesperson, speaking to confirm Mr Yi’s message, stated that the company would be looking to reinforce its “premium brand reputation, powerful product line-up and cutting-edge technology”.
While it’s alarming to see companies the size of Samsung having to tighten their belts, it will make a pleasant change to see a handful of well thought-out devices being brought to market by the Korean giant, rather than a boatload of quirky clones and experiments such as the K Zoom. The Galaxy S6 and Note 5 will surely be just as important as ever, keeping Samsung firmly in the minds of consumers worldwide.