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Samsung will make 25-30% fewer phone models in 2015
It’s no secret that Samsung is experiencing its fair share of financial woes lately, and, as smartphone sales didn’t reach the numbers that Samsung hoped for, many feel that it’s time for the company to rethink its strategy a bit.
It seems as if Samsung may be doing just that, as executives have confirmed that Samsung will produce 25 to 30% fewer smartphones models in 2015.
Samsung stated that they want to “increase the number of components shared across mid- to low-end models, so that we can further leverage economies of scale,” which is realistic for Samsung considering the amount of components that Samsung directly manufactures.
Samsung didn’t say exactly which models they would wind down/stop producing, but it would make sense to assume that this move would allow for focus on flagship devices, and possibly less focus on Minis and Megas. It would also appear that Samsung is under a bit of pressure to find a solution as quick as possible, which the head of the mobile division most likely felt after recently taking a massive pay cut.
While Samsung certainly needs a change in strategy, I personally wouldn’t be so quick to count them out. The Note line is still very solid, and while the S5 didn’t go where they wanted it to, sales-wise, the numbers certainly weren’t bad. Samsung is also already working on getting Android Lollipop up and running on their current phones and continues to release services to compete with the likes of Apple, so don’t rule them out just yet.
Do you think this shift in strategy will be a good thing for Samsung? Let us know what you think in the comments below.