Samsung to prioritize profits over growth in its handsets moving forward


Samsung, a name known globally as the makers of the only phone better than an iPhone, is shifting priorities from growth to profits in order to prepare for the “post-smartphone era.”

The Korea Times quoted a Samsung executive who said to prepare for the future, Samsung’s “handset unit has identified profitability as a priority over growth.” It’s a little surprising the timing of this shift, given the recent rise of Huawei and Xiaomi’s market shares. However, the Samsung executive went on to say that Samsung has no intention of letting rivals take Samsung’s marketshare.

With Galaxy phones typically coming in the Spring, we still have nine months to find out how this shift is going to affect the Galaxy S8 and Galaxy S8 Edge. The high-end Huawei Mate 8 is comparable in specs to the Galaxy S7 and comes in at a cost of $100 less. If Samsung lowers the quality on its next line of phones, they could end up losing marketshare if consumers realize they can get the same for less elsewhere. What will then be Samsung’s answer? We don’t know yet. And we likely won’t find out until we see some specs for next year’s models.

Will you be looking at Huawei or Xiaomi for your next phone upgrade? Let me know why or why not in the comment section.

SOURCE [Korea Times]
VIA [SamMobile]

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