After the appearance of smartphones, Samsung has developed to one of the leading manufacturers in the market who offer many different models of smartphones with different features and prices. Since then, Samsung has been at the very top in sales and quality of the smartphone business, but last year the company experienced a drop in sales as well as earnings primarily due to the emergence of competition from China.
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In that way, Samsung recently announced that the company will cut the quantity of its smartphone models in 2015 in a push to pare down expenses, and acknowledging the issue they are experiencing from fast developing low-cost rivals.
Samsung Electronics would cut the quantity of models by 25-30 % in 2015, Robert Yi, Samsung’s senior VP, said.
“In 2015, we will lower the number of smartphone models by one fourth to one third compared with this year,” Mr Yi told an investor forum in New York.
“This would allow us a chance to lower the prices of the models through mass production.”
This decision comes after that Samsung experienced an overall industry drop to 23.8 percent in the second quarter, compared to 32.5 percent last year , while the Chinese producer Xiaomi climb up to the third place behind second-positioned Apple, according to IDC.
From Samsung it is said that the decision is a way to support and concentrate on producing more affordable and competitive models.
However, a month ago, examiners assessed that there were around 40 million Galaxy smartphones sitting on the market in stores, as evidence of the increased sales of rival models.
On the other hand, Apple’s new iPhones with bigger screens have been massively accepted in a wider base of smartphone users, while Samsung has confronted the becoming risk from Chinese contenders, for example, Xiaomi, Huawei and Lenovo in the low- and mid-extent markets.
As a conclusion, it’s hard to believe that these steps will reduce the quality of the Samsung smartphones, but whether it will contribute to the fight for greater success against Chinese rivals we will have to wait and see.
