Samsung has announced that it is reduce one third of its Smartphones that it produces in an effort to cut prices in the face of stiff chinese competition.
Samsung is aligning its efforts more on budget devices that will enable it to compete with Chinese rivals like Xiaomi, Huawei and Lenovo to gain its market share in these emerging markets. We will also see a new range of budget Tizen based smartphones, the first of which is the anticipated Samsung SM-130H dual SIM Smartphone, which will hopefully see its India release within the next couple of weeks.
A company spokesman confirmed the new strategy during a presentation in New York by the South Korean conglomerate's head of investor relations, Robert Yi.
"[Lowering the model number] will allow us a chance to lower the prices of [remaining models] through mass production," said Yi. "In low- to mid-end products, price is the most important, and for high-end products, it is innovation."
Lowering the number of Smartphones also enables Samsung to use more common components across devices, which in turn lowers manufacturing costs, enabling a lower price point for devices.