Report: Samsung to focus on budget phones, cut total smartphone shipments in 2016

Report: Samsung to focus on budget phones, cut total smartphone shipments in 2016
As 2015 comes to an end, a year that saw Samsung do well in the low to mid-range area of the smartphone market with models like the Samsung Galaxy J5, it would appear that the manufacturer is going to stop focusing on its high-end models. According to an unnamed Samsung partner who spoke with the Korea Times, Samsung is going to lower smartphone shipments by 12% in 2016. After taking that drop into consideration, Samsung is apparently planning on shipping between 420 million and 430 million units next year.

The report adds that big things are expected in 2016 from the next iteration of the Samsung Galaxy A series, and the Samsung Galaxy J line. Having said that, the company still is counting on its flagship models like the Samsung Galaxy S7 and the Samsung Galaxy S7 edge to help it stay on top of the global smartphone market.


While the report says that Samsung is cutting smartphone production next year, it did note that the decline is not based on a drop in demand for Samsung branded handsets specifically. Instead, the Korea Times says that the entire smartphone market is suffering through a bit of a slowdown.


source: KoreaTimes via GforGames

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31 Comments

1. Rafishant

Posts: 394; Member since: Oct 13, 2015

They need to reconsider their high end line without that obsession in Apple products & Apple fans, instead of focusing on low end series.

2. Martineverest

Posts: 521; Member since: Oct 27, 2015

Could the Swedish analyst's prediction be true?

8. Arch_Fiend

Posts: 3947; Member since: Oct 03, 2015

Was That The Person That Said Samsung Would Die As A Smartphone Maker?

3. Tziggy14

Posts: 623; Member since: Sep 02, 2014

Looks like Apple just gained 99% of profit share.lol And Samsung has no choice since China's eating their budget lunch on the lower end.

4. artificialintelligence

Posts: 166; Member since: Dec 05, 2015

I wonder what the J' stands for samdung galany J' idk it sounds weird

12. ibend

Posts: 6747; Member since: Sep 30, 2014

because no other manufacture use that letter, lol sony already pick Z huawei pick P, Y and G LG pick G and V Meizu pick M HTC pick M, A and X etc.. and I dont think each of that letter stand for anything meaningfull :-/

16. UglyFrank

Posts: 2191; Member since: Jan 23, 2014

Justified as in the price is justified

5. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Android high end sell because of larger screen where Apple was failed to offer, now not anymore. Budget phone sell but not with the crappy specs.

6. SenorThrottles

Posts: 284; Member since: Dec 23, 2015

Samsung's budget phones are definitely getting better, I mean the Galaxy J5 actually comes with some pretty solid specs for the price.

27. Rifqiandi

Posts: 23; Member since: May 28, 2015

Yeah, they are getting better. Just slightly better tho

29. rishav20193

Posts: 240; Member since: Jul 18, 2015

i pretty much love the a5 & a7 2016 editions !! they r awesome n if priced well....can do well in the market

30. Kary1

Posts: 300; Member since: Jun 26, 2015

That's what you would expect as the technology improves. It's sort of like desktop PCs, where now many/most users can get by with a

7. hate-tech

Posts: 2; Member since: Dec 23, 2015

Samsung price are well above normal even the j series that represent BUDGET if samsung understand's what the word means

9. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

What is a budget phone? A budget phone is dictated by YOUR budget. No phone under $100 will be anything more than a cheaptastic piece of crap. Samsung makes high quality parts that are not cheap to make or sell. Samsung doesn't have to stoop to below $200 prices for sales. The margin just isn't worth it. For people who need cheap phones, they have option. Samsung doesn't have to be an option. They could drop many of there cheap phones and simply make better midrange options and have the same 2 at the top. In fact they could have 3 models in each tier. High end...the S and Note and make something in between. Mid-range...A series Low end...Just series and cut everything else off the map and just change the components based on market and country.

10. j2001m

Posts: 3061; Member since: Apr 28, 2014

This is very true, take Samsung TVs, if they have to make a tv at a very low price even at there hi range, they use may be a crap panel from China, you then get may be back light problems on blacks and so on, but if they use there own Samsung panel even in cheap tv like the Samsung ue40ju6000 in the uk, that I got for like £350 in a sale it's the best thing going no backlights problems at all and so on, I be thinking you get the idea

11. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

They need to come up with something unique, or they'll fail like for example : Match ASUS' price and offer slightly better specs .... If SAMSUNG defines ''budget'' as $250 or less...they're stilldelusional

14. j2001m

Posts: 3061; Member since: Apr 28, 2014

Hm, nope, unlike asus, if I go to my mate I got a nexus they go what the crap is that, oh look at my iPhone, what junk If I go Samsung phone, they go cool I.e. You are paying for the name and android phone and it's the only android phone that make Apple users think you ok to be with, if you get me, I.e. Samsung can charge what they like

17. ibend

Posts: 6747; Member since: Sep 30, 2014

their "budget" level, is overpriced compared to spec they offer, their J line should at least can match with Meizu's M2 Note, Xiaomi redmi note 2, or lenovo k3 note

24. Cicero

Posts: 1108; Member since: Jan 22, 2014

Samsung run different kind of business than China companies. First of all they are global and second they spend huge amount of money on R&D. Chinese one only integrate components produced by others, including Samsung, and sell mainly on internet. So they can lower the price. But it is working only in China and partially India and south-east Asia countries.

13. Astonvan

Posts: 237; Member since: Aug 14, 2015

soon Samsung will it run out of alphabets

15. j2001m

Posts: 3061; Member since: Apr 28, 2014

Soon Apple will run out of designand inoverion ideas, oh they ran out with the iPhone 4/4s the last phone Steve jobs made in full

18. bubbadoes

Posts: 1225; Member since: May 03, 2012

like i always said all along---the kias would run out of steam

19. tedkord

Posts: 17187; Member since: Jun 17, 2009

They could drop by 40% and still sell more than anyone else. Note 5 - the best phone of 2015.

31. Kary1

Posts: 300; Member since: Jun 26, 2015

That's not saying much. 2015 was a dismal year for new phones.

21. Applesexual3

Posts: 7; Member since: Dec 16, 2015

Yeah, like how Apple also cut 10% of 6s and 6s Plus production because of crappy sales? Note that if Apple is cutting by 10%, sales are even worse than 10%, as assembly lines do not allow customers to entirely back-out of the contract. A big customer like Apple will get some cut if they ask, but they'll still have to buy the majority of the units they agreed on.

20. zeeBomb

Posts: 2318; Member since: Aug 14, 2014

Samsung with the bold move. I suppose they really want to dominate the low end spectrum cuz of how tight the competition between other Chinese companies are.

23. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

the J series aren't that cheap to begin with.

26. SenorThrottles

Posts: 284; Member since: Dec 23, 2015

In the UK, the J5 is priced cheaper than the 16gb Moto G (3rd gen) and it offers similar specs.

22. xperiaZlover

Posts: 202; Member since: Nov 15, 2015

Samsung J series is selling like cupcakes in some countries. I have seen people waiting in ques to buy a J series device. J series is an amazing midrange . Excellent display. Android 5.1.1 .and low price make it really good.otg support as well. it was something that I wanted to see from Motorola or Sony. But Samsung did it. I believe Samsung gain more profits by selling J series than selling S series. I hope Samsung should give better software support to J series and A series. That is they should give at least one Android upgrade to these devices. Really big credits to Samsung for making great devices in 2015.

25. bubbadoes

Posts: 1225; Member since: May 03, 2012

looks like Every cell phone samsung produces. running out of ideas since they have basically tried every gimmick in the book with no luck. chat on. gone. music service. extict next up. samsung pay guys from samsung were standing in the mall this weekend giving you a gift to let them activate or show you how samsung pay works. off to a great start i see!

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