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- Samsung to slash number of smartphone models by up to one-third
- Updated today at 04:18 PM
- SEOUL (AFP) - Samsung Electronics has announced plans to slash the number of smartphone models it issues next year by up to one-third as it tries to cut prices in the face of intense Chinese competition.
- The strategy, confirmed by a company spokesman on Tuesday, was unveiled during a presentation in New York by the South Korean conglomerate's head of investor relations Robert Yi.
- Mr Yi said the company - which last month reported a near 50 per cent plunge in third-quarter net profit following a 20 per cent drop in the previous quarter - would reduce the number of smartphone models in 2015 by between one-quarter and one-third.
- The strategy is expected to be accompanied by a significant increase in the production of remaining models that can be sold more cheaply to compete with cut-price Chinese rivals.
- The recent nosedive in Samsung's fortunes followed several years of stellar growth and a seemingly endless succession of record quarterly profits driven by its all-conquering mobile unit.
- Its flagship Galaxy S smartphone has suffered in the high-end market from the popularity of arch-rival Apple's new iPhone 6, while its dominance of the middle- and low-end handset segment has been challenged by Chinese handset makers such as Huawei, Xiaomi and Lenovo.
- For the moment, Samsung is still the comfortable leader by sales volume, but its share of the global smartphone market has fallen from 35 per cent a year ago to just under 25 per cent, according to Strategy Analytics.
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