Samsung Electronics shifting strategies towards profitability over growth, from now on.
The smartphone industry is seeing a drop in the last couple of years (not Apple or Huawei though) with people buying less smartphones than before and Samsung Electronics is one of the OEMs whose smartphone business is affected by the market profits drop, reason why the South Korean company informed its investors recently of its strategy shift.
According to KoreaTimes, Samsung Electronics (known for releasing a plethora of smart handsets every year) current priority when it comes to smartphones is profitability over growth, meaning fewer devices thrown on the market by the Korean OEM from now on.
“We have been seeking growth in terms of shipments for years. Samsung is preparing for the post-smartphone era and that’s why our handset unit has identified profitability as a priority over growth,” an executive at Samsung Electronics said.
We should expect only one Galaxy Note 7 this year with its edges curved like the Galaxy S7 Edge has, including a cut-off in numbers in the budget-friendly area (there will be less low-end smartphones).
The company’s smartphone business focus on profitability strategy will not necessarily allow its competition to gain from Samsung’s current market share, because (statement follows):
“Samsung will keep the company-set share according to markets. We will launch promotional campaigns if we have to. But the company will be unlikely to initiate cash-intensive promotions to clear inventory and increase market share,” Samsung exec added.
With this strategy shift Samsung is still expected to ship around 400 million smartphones globally.