Brand "Samsung" realizes it’s making too many phones & it will cut lineup by 30%
The world’s largest maker of smartphones just made an unexpected announcement — Samsung says it’s going to start making fewer phones. Despite how odd that sounds, this “less-is-more” approach is probably the safest thing Samsung can do in the face of flagging sales. The company says it’s giving the axe to as much as 30% of its product lineup for next year, and it’s a big lineup. Even with the 30% reduction, Samsung will probably make a few dozen different phones.
Samsung enjoyed incredible profits quarter after quarter until earlier this year. In a quarter when it should have been raking in the dough from sales of the just-released Galaxy S5, its profits actually decreased, a trend that has since continued. When consumers couldn’t get enough of its devices, Samsung could afford to make a different phone for every niche, but now? That’d be foolish.
This plan to reduce the number of device it makes is how Samsung intends to stay on top as Chinese Android OEMs continue their rise. Companies like Huawei, ZTE, and Lenovo have started making more desirable phones and pushing outside of their traditional Asian markets. In fact, Lenovo just completed its purchase of Motorola, which is making some of the best Android phones you can get. That has to make Samsung nervous.
Samsung’s decision to pare down its device offerings mirrors the actions of another Android OEM — HTC. After taking an early and commanding lead in the Android device ecosystem, HTC fell upon hard times when it started making too many phones, most of which were mediocre. HTC cut things down drastically to just a handful of models each year, which has allowed it to focus on reducing costs and remain afloat. It’s not clear sailing for HTC just yet, and that’s probably the scenario Samsung wants to avoid by pivoting now. Basically, Samsung doesn’t want to end up like HTC, just scraping by after being overtaken by the competition.
The world’s largest maker of smartphones just made an unexpected announcement — Samsung says it’s going to start making fewer phones. Despite how odd that sounds, this “less-is-more” approach is probably the safest thing Samsung can do in the face of flagging sales. The company says it’s giving the axe to as much as 30% of its product lineup for next year, and it’s a big lineup. Even with the 30% reduction, Samsung will probably make a few dozen different phones.
Samsung enjoyed incredible profits quarter after quarter until earlier this year. In a quarter when it should have been raking in the dough from sales of the just-released Galaxy S5, its profits actually decreased, a trend that has since continued. When consumers couldn’t get enough of its devices, Samsung could afford to make a different phone for every niche, but now? That’d be foolish.
This plan to reduce the number of device it makes is how Samsung intends to stay on top as Chinese Android OEMs continue their rise. Companies like Huawei, ZTE, and Lenovo have started making more desirable phones and pushing outside of their traditional Asian markets. In fact, Lenovo just completed its purchase of Motorola, which is making some of the best Android phones you can get. That has to make Samsung nervous.
Samsung’s decision to pare down its device offerings mirrors the actions of another Android OEM — HTC. After taking an early and commanding lead in the Android device ecosystem, HTC fell upon hard times when it started making too many phones, most of which were mediocre. HTC cut things down drastically to just a handful of models each year, which has allowed it to focus on reducing costs and remain afloat. It’s not clear sailing for HTC just yet, and that’s probably the scenario Samsung wants to avoid by pivoting now. Basically, Samsung doesn’t want to end up like HTC, just scraping by after being overtaken by the competition.
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