Samsung has had a slightly scattershot approach to their smartphone range, releasing handsets for every possible market with a wide range of specifications and options and this has led to the company losing money. Don’t fret though, they’ve got lots of it so Samsung isn’t going anywhere any time soon but they’re looking to make more cash in the long run.
That’s why, in a recent earnings call, Samsung has revealed that they’re going to be scaling back the number of smartphones that they release onto the market. Which isn’t a bad call, in 2014 Samsung introduced over 50 handsets to the world and that has a chance of confusing consumers.
So they’re going to be streamlining their production with fewer phones and they’ve got other cost-cutting measures that will result in a more uniform production line. They will be “increas[ing] the number of components shared across mid- to low-end models, so that we can further leverage economies of scale.”
Translation: Higher production runs of components, which will cost less to create more smartphones. With actual smartphone models set to drop by about 30%, Samsung’s looking to be posting some impressive financials again soon.
Source: Wall Street Journal