Samsung switches smartphone strategy, where the focus is now on to increase profits rather than market share in order to maintain its leading position in the market.
With a saturated smartphone market, which decreases in growth over the next few years, Samsung can no longer bet on rising market shares.
The South Korean manufacturer has now realized that it must, therefore, focus on other areas in order to be able to maintain its position in the smartphone market as the largest manufacturer.
The not-so-surprising recipe from Samsung sounds to increase the profit on each sold smartphone, such that, despite the lackluster sales figures, can continue to maintain an equally high, if not higher, earnings.
“We have strived as regards shipment growth for years. Samsung prepares era for smartphones, and it is therefore our Mobile Division has reached profitability a priority rather than growth, “ says a Director of Samsung Electronics to the newspaper Korea Times.
Samsung will strive to sell about 400 million. Smartphones in 2016, which is a slight increase from the 377.8 million. Samsung smartphones that were lashed across the disk in 2015. The revised strategy will mean that the profit margin, or the profit in Samsung’s Mobile Division rises from 15.8 to 17%.
Samsung cuts in the number of low-cost phones
In order to achieve this, initiates several actions. Samsung First of all, the South Korean manufacturer cut down on the number of low-cost phones. Samsung is indeed hard pressed by the Chinese producers, pushing the price right at the bottom and thus makes it harder for consumers to justify a purchase of a Samsung smartphone, which is several hundred, perhaps 1,000, crowns more expensive despite similar specifications.
On the other hand, there is good money in sales of top models Samsung Galaxy S7 and Galaxy S7 edge, so here there does not seem to happen some changes.
It’s also got Samsung mind that ‘ fancy ‘ functionality-or rather gimmicks-in top models not appeals to consumers particularly, which gets a lukewarm reception. It will therefore also be attempted corrected.