Samsung is the world’s largest manufacturer company and it has been introducing latest Smartphones with latest features and worth-seeing structure. But now, it has announced that it will reduce few numbers of Smartphones from 2015. The reason behind this bad news is that the South Korean company has faced a lot financial crises due to which it has announced to reduce fewer Smartphones next year. They have got a great financial success in the past, but now they are suffering with poor profit and lack of financial situations as well as lack of managing problem.
Samsung has always seen as a fastest follower company of the world just because whenever new ideas come to the markets from the competitors, Samsung immediately react to build the new version under its technology. Samsung is well-known for offering different sort of Android devices around the world. But now, as it is suffering with lower profit problems, it is eliminating some Smartphones to reduce the loss of cost and to manage each Smartphone model’s design and features properly. Samsung has not yet disclosed the accurate number of models that would be affected. Samsung would be able to properly manage its inventory and supply of chains after cutting the number of models it has launched. It will be able to keep some amount of money for the future.
The head of investor relations Robert Yi of the South Korean company said that:
We would cut the number of Smartphones about 25 to 30 percent from the next year
The remarks of the invest was confirmed by the Korean company’s spokesman on a day before. He also said during a presentation to investors, held in New York on Monday, that Samsung need to share its components across less low-ends and mid-tier devices to save money.
According to the most recent earning report, the company’s mobile division has reported 74 percent loss in profit. Its market share has dropped to 23.8 percent in the third quarter from 32.5 percent in a year ago. Samsung has losing ground as seems to be happening. In October, Samsung reported a 49 percent drop in its third-quarter net profit. It has recently reported operating profit margins from over 15 to 7 percent in the last quarter. Samsung has been facing this type of decline in profit from the last two quarters of the year.
I think this news is really shocking for the Samsung Lovers!