Samsung is looking to cut cost and boost profits by cutting the number of smartphone models for consumers in 2015.
Head of Samsung investor relations Robert Yi told the Wall Street Journal in New York that his company will reduce the number of handset types by as much as 30 percent in a bid to cut costs and boost profits.
The Korean firm's strategy for years has been to push a huge number of handset to boost up the sell. Though they seems to adopt a new approach.
Samsung didn't specify which model of phones are going to be withdrawn.
Wall street Journal is saying that Samsung will focus on increase the sale of mid- to low-end models to compete with Xiaomi or Huawei. Xiaomi has been very successful with reasonably priced smartphones in countries like China. Xiaomi overtook Samsung to become the number one smartphone manufacturer in China earlier this year. Samsung is planning some new strategies as the competition is increasing between Chinese smartphone manufacturers, ensured to AFP by a Samsung's spokesman.
Samsung will have to think about their high-end models also as they are in a pressure for Apple's iPhone 6 and iPhone 6 Plus.
The Seoul-based company will increase the number of components shared across, so that they can further leverage economies of scale, an executive at the company's mobile division said during an earnings call last month.
According to market research consultant Strategy Analytics, Samsung is still in the top of the smartphone manufacturer list. This year Samsung grips 25% of market share where it was 35% last year.
