Samsung is the largest maker of Android devices in the world, but after a series of poor financial performance recorded in recent months, the South Korean company has announced that it will reduce the number of smartphone models it offers, and next year.
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The news was announced by Robert Yi, head of investor relations, which states that Samsung plans to reduce its range of smartphones from about 25 to 30% .
This year, Samsung has released a wide range of smartphones with new recently launched in the mid-range market models. These are the Galaxy and Galaxy A3 A5. However, this has not prevented a 49% decline in net income in the third quarter.
Naturally, investors Samsung are not happy with the latest developments and require changes to the company growing again. As a result, the company plans to return to the percentage of double-digit margin in 2015. The largest manufacturer of smartphones has maintained operating profit above 15% for ten consecutive quarters margins, but for Q3 2014 this figure fell to 7%.
A lean production
The increase in the number of variants of Samsung Galaxy is coming at a time when consumer interest for the Galaxy brand seems to be declining. Samsung is also facing increased competition from a revitalized Motorola, despite its recent sale to Lenovo of Xiaomi, Gionee and other manufacturers in developing countries.
This is reflected in figures, because if Samsung is currently the largest manufacturer of smartphones in the world, she quickly lost ground. Its market share fell to 23.8% in the third quarter, against 32.5% a year. Its Chinese competitor, Xiaomi, rose to third place behind Apple, according to recent figures from IDC.
There is no information on smartphones that would be abandoned in 2015. According to some sources, Samsung will come off on the areas of entry and mid-range . To simplify the process, Samsung will increase the number of shared between different models in order to reduce the cost components .
Samsung hopes to better manage its inventory and supplies by reducing the number of models that will be released next year, which should result in a greater focus on S6 Galaxy and Galaxy Note 5 marketing.
See also : iPhone 7: the largest camera we have ever seen
The news was announced by Robert Yi, head of investor relations, which states that Samsung plans to reduce its range of smartphones from about 25 to 30% .
Naturally, investors Samsung are not happy with the latest developments and require changes to the company growing again. As a result, the company plans to return to the percentage of double-digit margin in 2015. The largest manufacturer of smartphones has maintained operating profit above 15% for ten consecutive quarters margins, but for Q3 2014 this figure fell to 7%.
A lean production
The increase in the number of variants of Samsung Galaxy is coming at a time when consumer interest for the Galaxy brand seems to be declining. Samsung is also facing increased competition from a revitalized Motorola, despite its recent sale to Lenovo of Xiaomi, Gionee and other manufacturers in developing countries.
This is reflected in figures, because if Samsung is currently the largest manufacturer of smartphones in the world, she quickly lost ground. Its market share fell to 23.8% in the third quarter, against 32.5% a year. Its Chinese competitor, Xiaomi, rose to third place behind Apple, according to recent figures from IDC.
There is no information on smartphones that would be abandoned in 2015. According to some sources, Samsung will come off on the areas of entry and mid-range . To simplify the process, Samsung will increase the number of shared between different models in order to reduce the cost components .
Samsung hopes to better manage its inventory and supplies by reducing the number of models that will be released next year, which should result in a greater focus on S6 Galaxy and Galaxy Note 5 marketing.