In an high competition reducing profits, Samsung has reported that it like to reduce the number of smartphone models it will launch in 2015. That number will be of somewhere around 25 and 30 percent, as per head of investor relations Robert Yi.
Samsung will likewise be looking to return to a “double digit percentage margin” in 2015:
After maintaining smartphone operating-profit margins above 15% for 10 consecutive quarters, Samsung’s margins from its mobile and information technology business were squeezed to just 7% in the third quarter ended September—the lowest level since the end of 2008, before it launched its first Galaxy smartphone. Acknowledging the slide in margins, Samsung executives said during an earnings call last month that its new goal is to maintain a sustainable double-digit percentage margin starting in the new year. They reiterated that pledge during this week’s investor day meeting.
The models that will be stopped have not yet been unveiled, yet Samsung is said to be centering its consideration on the mid and entry level range of devices. To do so adequately, an official said that Samsung will ” increase the number of components shared across mid- to low-end models, so that we can further leverage economies of scale.”
The South Korean leader will likewise build its concentrate in China, where Xiaomi overwhelmed Samsung to turn into the most obvious smartphone maker in the nation earlier this year. Samsung has officially begun focusing on a more youthful audience with the dispatch of the Galaxy A3 and Galaxy A5, its first full-metal unibody devices.
Could Samsung spin things in the order to shake-up its smartphone exertions?