Samsung is changing its way of working they will focus on profit instead of working on the uniqueness Samsung is supposedly changing its system to concentrate on “overall revenues” rather than “extravagant components” for cell phones.Samsung thinks that it has enough innovation and production chops to stay ahead even without stuffing tens of rarely-used features and hardware options in its phones, or cutting prices to expand, so it expects its business model in the mobile division to stay largely the same.
Samsung strategy was focusing on features but now “profit margins” instead of “fancy features” for smartphones. Korea Times reports that Samsung has taken this decision due to the rise of Chinese handset brands as well as an uninspiring response from consumers for “fancy features” in its Galaxy series. The new move is said to be a way Samsung wants to streamline its Galaxy smartphone series and maintain the profits in the category.
said, “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.The executive continued that Samsung expects smartphone shipments to remain at 400 million units “based on the business strategy. The company is said to have notified investors of its new smartphone strategy. “We had been looking for boom in phrases of shipments for years. Samsung is getting ready for the submit-cell phone technology and that’s why our handset unit has diagnosed profitability as a concern over boom.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,” The executive added that the company expects the new strategy to boost profit margins for the handset division by up to 17 percent in second quarter of this year from the present 15.8 percent a quarter earlier.
Samsung earlier this year reported a better than expected profit for the first quarter that represented a 10 percent gain from a year earlier and this was believed to be driven by strong sales of its new flagship Galaxy S7.