Samsung is to become a little more selective over the devices it brings to market as the company faces up to its recent drop in profits.
After years of spamming the smartphone space with all manner of hard to differentiate devices, the company has confirmed it will reduce its handset output by almost a third during the coming 12 months.
Speaking at a presentation in New York yesterday, Robert Yi, Samsung’s Head of Investor Relations revealed the upcoming cuts. He revealed the company plans to “cut the number of models by about 25 per cent to 30 per cent.”
As well as condensing its product output, Yi has revealed Samsung will look to consolidate the number of components used across its full range of devices in a bid to reduce costs.
He stated the company will “increase the number of components shared across mid- to low-end models, so that we can further leverage economies of scale.”
The move follows a tough year for the Korean manufacturer in which revenues dropped by over 60 per cent.
Disappointing handset sales across premium lines – including the Galaxy S5 – and increased competition at the low-cost end of the market have seen Samsung’s mobile business suffer.
Moving forward, the company has recently pledge to focus primarily at the upper end of the market.
“We will strengthen our product competitiveness by reinforcing our premium brand reputation, powerful product line-up and cutting-edge technology,” an official Samsung spokesperson said recently.
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