Samsung executives have confirmed that the company is betting on a more streamlined range of smart devices as it looks to claw back some of the profits it lost in the most recent financial quarter.
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Before releasing its quarterly earnings report last month, the company warned of weak demand for phones and increased marketing spend. Still the announcement to streamline its range of smartphones is hardly surprising.
Read more: Samsung profits fall as it gets squeezed at both ends of the market
The global smartphone leader’s market share declined in annual terms for the third straight quarter in July-September. In the third-quarter, its operating profit fell by an annual 60.1% to 4.1 trillion won (US$3.9 billion). Profit for the mobile division fell 73.9% to 1.75 trillion won in the third quarter, its worst performance since the second quarter of 2011.
Following the third quarter reports last month that revealed that profits had almost halved in the quarter, Samsung’s aims to “increase the number of components shared across mid- to low-end models, so that we can further leverage economies of scale”. This will be easy for Samsung to do as it already makes many parts of the phones itself.
Robert Yi, Head of Investor Relations, said that the number of models would be cut by around 25 to 30%. This news means possibly less Galaxy Megas, Cores, Rounds, Edges and Minis.
