Samsung re-thinking its smartphone strategy, may shrink the Galaxy portfolio a bit

Samsung re-thinking its smartphone strategy, may shrink the Galaxy portfolio a bit
Samsung has had a tough year in the mobile business, no doubt. The company's Q2 and Q3 financial reports show revenue going down as its facing serious competition from companies like Xiaomi in China, and now Apple, in Sammy's home – South Korea. The handset market has become a highly competitive place, where most of the big players have started to bleed money, and Samsung has inevitably joined the wounded.

A couple of months ago, we heard about Sammy planning to cut expenses and tighten its belt a little. Now, after the Q3 report shows only a slight rise in handset sales, and a significant drop in earnings, Samsung has decided it's time to look at its smartphone strategy.

At an earnings conference call, Robert Yi – a Samsung head of investor relations – acknowledged that the company's response to changing market conditions was not quick enough, The Guardian reports. It was then said that Sammy plans to revamp its smartphone strategy for next year to seek more “efficiency”.

It is not exactly clear what this could mean, though. Perhaps, Samsung will seek to manufacture some more affordable, but premium-looking handsets, in order to battle the likes of Xiaomi and their cheap, but heavily spec'd-out devices in China and India. We've already heard that the new Galaxy A line may be conceived with exactly that in mind.

Another possible translation to “efficiency”, and this is also what The Guardian speculates, is that Sammy may actually decide to cut down on the gazillion different models of Galaxy phones and focus its efforts on producing a smaller portfolio of products, at higher cost-efficiency rates.

What would you say if a few Galaxy models get their ropes cut? Doesn't sound so bad, eh?

source: TheGuardian

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70 Comments

1. jegley23

Posts: 8; Member since: Oct 08, 2014

I hope they rebound next year..goodluck.

30. Mxyzptlk unregistered

I called it. They release too many phones.

40. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

They should make more good looking phones like Alphas-Note 4s than more craps like Galaxy Pocket, Neo, Ace, Style, Plus, Quattro, Star, Young, Core, Grand, Prime, Duos, etc., etc... And more over it they all look the same. Losses are making 'em thinking again which would be a good strategy but I think price will also play a crucial role especially in low-mid range segment as compared to Chinese OEM offerings. Sammy needs to fight back to stay in the competition.

56. engineer-1701d unregistered

its not that they released to many phones its that they did not listen to the people we wanted a solid feeling design with a massive battery and touchwiz has to be torn down and done over top to bottom. samsung would benefit from moto's way, almost stock android and have samsung apps availible from kies or and play store, thats how they can retake the top and keep the phones 5 inch to 6 inch meaning 5, 5.5 and 6.

60. bestmvno

Posts: 251; Member since: Mar 07, 2014

There have been studies that show when a consumer is given too many choices confusion can set in, and ultimately no choice gets made and conversions are lost. Samsung seems to release a new phone every few weeks, although I'm sure it's not exactly at that pace, still, this principal could be at play here. They should still keep several options available though. I would think focusing on perhaps 3 different sized phones, with a high end, mid end and low end model for each size would be a good strategy.

68. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

A lot of people did, not just you.

36. The-Sailor-Man

Posts: 1095; Member since: Mar 25, 2014

The TRUTH is that the Q3 report shows a rise in handset sales. The HUGE PROFIT that phone makers rip-off the consumers , to get down - is not smth that we should worry about. Right? (it was same with every new tech product) We must welcome Samsung for that: selling more and best smartphones with less rip-off. .

2. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

XiaoMi release 2 phones last year and also this year with zero ads cost, I don't think Samsung can compete that, even it did, it's too late. Samsung already a yesterday brand in Asia

5. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

"Samsung already a yesterday brand in Asia" Said no one ever.

10. DogeShibe

Posts: 1121; Member since: Jan 10, 2014

In the last 3 days i've seen 2 Xperia's and i just saw a G3. I'm afraid he's right.

14. tech2

Posts: 3487; Member since: Oct 26, 2012

So because you saw 5 people out of which no one owns Samsung you think that Samsung is yesterday's brand ? Very sound and logical conclusion Leems Segit.

42. DogeShibe

Posts: 1121; Member since: Jan 10, 2014

It's really really normal to see Samsung where i live. But abnormal to see some LG and rare to see xperias. So...

57. engineer-1701d unregistered

dogeshibe is also not in america he is in asia most likely

67. Topcat488

Posts: 1415; Member since: Sep 29, 2012

*Alaska. He saw 3 people, 2 Elk, and a Deer.

15. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

He's not right, and it's normal to see people using a phone that's not a Samsung. It's just the other brands are catching up, but Samsung is definitely not a yesterday brand, at least for now.

33. The-Sailor-Man

Posts: 1095; Member since: Mar 25, 2014

Doesn't look like this on the article: "Now, after the Q3 report shows only a slight rise in handset sales" So Samsung sell more phones. Right? As a consumers we should NOT care so much about normalizing THE HUGE PROFIT that phone makers rip-off us .

38. Awalker

Posts: 1977; Member since: Aug 15, 2013

You might not care that Samsung's profits are dwindling but I'm sure Samsung and its shareholders have a different opinion. The primary goal of a company is to make money. Why else would you go into business?

58. The-Sailor-Man

Posts: 1095; Member since: Mar 25, 2014

But Samsung makes MUCH more money than ANY OTHER ANDROID OEM. Why we the consumers should care than???? We should be happy that we get more for our money. Right? We are not like you iZombies to give our lives for some logo. We just buy the best, no matter of the brand.

16. maherk

Posts: 6881; Member since: Feb 10, 2012

So you only saw 3 people in the past 3 days?

43. LiquidGalaxy

Posts: 332; Member since: Jul 03, 2013

I think thats probably standard for the majority of people that frequent this site..

45. tech2

Posts: 3487; Member since: Oct 26, 2012

Ask him how many dogs he saw in the same time. You'll be surprised at the answer :3

46. DogeShibe

Posts: 1121; Member since: Jan 10, 2014

I was talking about smartphones and not people.

53. NokiaFTW

Posts: 2072; Member since: Oct 24, 2012

I see one here on this site that goes by the name of tech2.

47. Teeeyoo

Posts: 99; Member since: Jul 13, 2013

Maybe? You cant really tell by just seeing people with 2 experia's and a G3. The next day maybe you'll see 5 people with galaxies..:D

52. DogeShibe

Posts: 1121; Member since: Jan 10, 2014

It's just the start of Samsung's decline.

69. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I guess they represent a whole country full of people?

23. walnuttt

Posts: 153; Member since: Apr 11, 2014

China phone fanboy detected

64. Venkatramanan

Posts: 327; Member since: Aug 15, 2014

He is not a fan boy. He is racist. He always bashes Japan products though their Chinese brands are using Japanese optics.

3. Industriality

Posts: 131; Member since: Sep 08, 2014

Flooding the market with cheap phones no longer works.

18. maherk

Posts: 6881; Member since: Feb 10, 2012

It's not about flooding the market with low and mid rangers, it has more to do with the fact that Samsung is slapping the Galaxy name on anything running Android. I think the release of the A series will do them good, as long as they don't overprice it, which has been an issue with Samsung lately, their phones(especially the mid rangers) are usually released for a higher price than what the competitors are offering then they bring down the price after a month or so.

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