Samsung famously adds a new smartphone to its lineup every few weeks, and while this approach has been successful in the past, a run of poor profits means it has to change. In 2015, we can expect to see significantly fewer smartphones from the South Korean company.
Robert Yi, Samsung’s head of investor relations, has confirmed that the company plans to reduce its smartphone lineup by 25% to 30% next year as it looks to cut costs and prevent a further slump in profits, The Wall Street Journal reports.
Having fewer smartphones in its catalog will allow Samsung to more efficiently operate its inventory and supply chains. The company is also hoping that it will boost the desirability and therefore the adoption of its high-end offerings like the Galaxy S and Galaxy Note families.
In recent years, Samsung has seemingly been launching as many handsets as it can to cater to every level of the market. We’ve seen several flagships each year, following by smaller and more affordable variants of those devices, as well as low-cost offerings for emerging markets.
It’s unclear at this point whether the company’s new approach could mean fewer flagships or simply a smaller lineup of affordable offerings — but with devices like the Galaxy S5 and the Note 4 still selling well, and greater competition from companies like Xiaomi in emerging markets, the latter seems like the more likely route.
Despite declining profits as a result of weaker-than-expected sales, Samsung remains the world’s biggest smartphone maker, outpacing even Apple’s hugely successful iPhone. But stronger competition and an increase in more affordable devices means Samsung devices aren’t as appealing as they once were to a significant segment of the market.