Samsung plans to tackle profit drop
Samsung has responded to underwhelming sales of the S5 and an overall drop in last quarter profits by planning a smartphone selection overhaul.
According to The Guardian, the South Korean manufacturer, still seen as a behemoth in the industry, will respond quickly and ruthlessly in order to combat the threat of falling behind the new pacesetters, and long-time rival Apple.
The Galaxy S5, which is undoubtedly its flagship phone, simply did not generate enough interest, whilst local brands from China and India have made significant progress.
There will be a tactical rethink, which quite possibly translates as a reduction in production. Fewer smartphone models could be designed and released; this conflicts with the company’s original aim to offer more choice, directly and deliberately opposing Apple’s long-serving strategy.
Kim Hyun-joon, senior vice-president at Samsung’s mobile communications business said: “High-end smartphone sales result was somewhat weak. We will fundamentally reform our product portfolio.”
Unfortunately, we do not have any comments yet. Be the first to add one.