Samsung is a huge corporation, they manufacture everything from microwaves and refrigerators to smartphone and smartwatches. We’re, of course, interested only in Samsung Mobile division considering the line of work we do. Samsung has been untouchable for a long time, the company has been manufacturing and selling tons of devices month after month. Things have changed a bit lately, the company’s financial reports showed a drop in revenue in Q2 and Q3 this year. Xiaomi is on the rise in China and is currently the number 1 OEM there while Apple has entered Samsung’s home market, South Korea. These are just some of the possible reasons Samsung’s revenue went down. Samsung doesn’t have a reason to panic, not yet anyway, though it seems they’re re-thinking some stuff.
Robert Yi, Samsung’s head of investor relations, admitted that the company didn’t react quick enough to the changes in the market, The Guardian report. He said that Samsung plans to revamp its smartphone strategy in order to be more efficient next year. We didn’t exactly say what he means by that, but considering what the competition is doing, perhaps Samsung finally decided to lower the prices of their premium handsets in order to compete with the likes of Xiaomi. There have already been reports that Samsung’s Galaxy A line is meant to do just that, though those are not exactly top of the line devices even though they sport a premium design. The Guardian thinks that Samsung might actually cut down on the amount of Galaxy phones they produce and offer a somewhat smaller portfolio and increase efficiency that way, which is also kind of logical and possible.
I believe opinions differ here, so I’d like to hear from you. Do you think Samsung makes too many smartphones and that they should trim their portfolio? Do you think Samsung will do that or will they take a different approach to tackle the revenue drop? I actually think that Samsung will do both, decrease their prices and also trim down their portfolio of devices which is just too big at the moment. I also think Samsung should revamp its software offering, but that’s just me, I believe many of you would disagree and actually like what Samsung is offering at the moment.
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