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Samsung, too many phones, kills the phone

Samsung, too many phones, kills the phone
samsung-too-many-phones-kills-the-phone

Good or bad news, Samsung has announced that it will reduce the number of smartphones it sells by 2015.

This mobile phone giant plans to reduce its production of smartphones before the year 2015. This order to compete, but also to win in emerging markets. With the 56 models of smartphones launched sometime in the year 2014, the company wants to rethink its marketing strategy.Uneconomic production and a drop in profits in the last quarter, the Korean company has wiped that setbacks with the terminals that it has launched since early January. So, to remedy this situation, the mobile branch of Samsung decided to reduce its production by 20 to 30%. Indeed, competition is tough in the middle of the smartphone as Apple, Huawei, Xiaomi... share the market with this Korean giant. Then, to refocus its strength and stop trivializing his articles, the company decided to stop overproduction.

Samsung wants to offer more competitive phones

This strategy allows among others to reduce the costs associated with the production, and subsequently to improve the finish of the unit. This decision will allow the company to reduce operating margins. Admittedly, this Korean company had a net increase of these sales, but profitability perspective, it is a different matter. Loads that cost the most expensive to the company no doubt remain advertising campaigns. Then, by decreasing the number of smartphones produced, the company may thus see its margins widen. A decrease of this magnitude will not only affect the society, but also the consumer Portfolio Fund. Actually, Samsung may thus propose smartphones at the best price compared to its competitors.

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