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Samsung reduce production due to poor revenue
Samsung reduce production due to poor revenue

Samsung to cut smartphone models next year due to poor revenue

We all heard about Samsung’s poor Q4 report this year. We also were in the know about how the Galaxy smartphones from Samsung just weren’t selling as supposed to this past year. With this in mind, Samsung decided that they would set their goal 30 % lower for 2015, meaning that the company will be cutting smartphones out of their portfolio. We can all agree that Samsung has an enormous smartphone portfolio to boast with, with tens of new releases each year. Thus, we wouldn’t mind if a handful of them would be discontinued, because they aren’t really different from one another, to be honest.

Samsung was successful in the release of the Galaxy S5, Galaxy Note 4 and Galaxy Alpha, but other phones from the company, like the Galaxy Grand, Galaxy Ace, Galaxy Mega, Galaxy Avant, Galaxy Core and many more different variants of the already mentioned phones. Upcoming releases from Samsung include the new Galaxy A flagships, the Galaxy A3, A5 and A7, modeled after the pretty successful Galaxy Alpha. The Galaxy Note 4 and Galaxy Edge are the most recent releases met with great enthusiasm from the public, who appreciated the innovative design of the Edge and the metal inserts of the Note 4. Nonetheless, Samsung has too many for too few, meaning that there isn’t such a high demand for various Samsung Galaxy phones as the company had hoped.

That’s why Samsung will be reducing the new smartphone models it will be releasing in 2015. The measure aims to help improve the South Korean company’s decreasing revenues. After the 75% drop in mobile profits for Q3 2014, and another bad Q4, Samsung realized that something needed to be done and warned investors about their declining revenues. The decline in profits for Samsung was caused by declining sales of Galaxy smartphones on one hand and increased competition from Chinese manufacturers like Lenovo, Xiaomi and Huawei on the other hand.

In any case, Samsung and co seem hopeful about the future and are sure that a change in strategy and a drift towards premium phones will help the company regain the top spot in revenues and profit reports by the end of 2015. With the imminent trend of premium builds and materials being used in smartphones, Samsung complied with the announcement that the Galaxy A3 and Galaxy A5 will have metal unibodies similar to that of Apple’s recent flagships. The company will surely stick to the premium side of things in the future and will probably try to release more accurately priced premium flagships and less cheap-o, expensive flagships.

About Egon Kilin

My life-long dream has been to test out every gadget on the market! Considering the fact that I've rapidly destroyed almost every gadget I've had so far, I'm not inclined to owning something, so my ideal outcome would be to have a different gadget each month. I'm really into smartphones, wearables and tablets and I love Playstation and Xbox, I'm sure I'll beat you at your own game (after a month of training... or two)

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