Samsung is set to ‘fundamentally reform’ its smartphone product portfolio with a focus on the mid to lower end of the market. The manufacturer revealed the strategy in its quarterly analysts call, also stating that it had failed to react fast enough to increased competition in this market segment.
Speaking on the conference call Hyunjoon Kim, senior V.P. of mobile communications business at Samsung said: ‘We will fundamentally reform our product portfolio and increase the price competitiveness of its mid to low end smartphones.’ Adding that the firm would ‘slimline the product portfolio and through these efforts actively address the growing demand in the low end market, whilst also improving profitability’
Samsung said it would differentiate its products in the mid to low end category by using higher quality components and features such as the camera.
The manufacturer also admitted that it had not reacted quickly enough to increased competition in the mid to low end segment of the smartphone market. As the mobile division declined for a second consecutive quarter. Robert Yi, senior V.P. investor relations at Samsung said: ‘Price premiums were eroded due to a lower level of differentiation among devices in the market and rapidly changing competitive landscape driven by price competition. Our responses to these changes were not quick enough to affect the [latest set of] results.’
The call also revealed that despite the release of new products such as the Note 4 and the Galaxy Alpha, the brand's outlook remained uncertain for the next quarter.