In an age when mobile phone companies are releasing new smartphones every few months, it comes as a surprise that Samsung has announced that it will actually be reducing its range.
The South Korean company stated that in a bid to cut back company costs, it will be cutting its number of models by between 25 to 30 per cent in 2015.
Samsung’s senior vice-president, Robert Yi, confirmed the news saying: “In 2015, we will lower the number of smartphone models by one fourth to one third compared with this year.”
It is also hoped that by doing this, the company would see a boost in sales given the news that while Samsung was at the number one spot when it came to smartphone shipments in the third quarter, lower-cost Chinese company Xiaomi saw a great increase in shipments coming in at third place after Apple at second.
With regards to shares, Samsung fell to 24.7 per cent in the third quarter, so it is perhaps not so surprising that Samsung is making such a drastic change to its offerings.
“[This] would allow us a chance to lower the prices of [remaining models] through mass production,” Mr Yi added.
By doing this, Samsung would be able to therefore concentrate on its most competitive models and ensure that its sales are boosted within the next 12 months.
In fact, the company only said last month that it was looking to offer more attractive and affordable phones in an aim to find cost savings by standardising the components used in different models. So far the company has produced a multiple amount of models to cater towards each segment of the market, which has in turn made it difficult to cut costs within the company.
However, it isn’t quite fully clear yet if this means that Samsung will be creating fewer new models to the market next year, or if it means that they will be cutting the number of the low-selling devices they produce.