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Samsung is focusing on profitability in the "post-smartphone era"

By Cookie Monster - on 22 Jun 2016, 1:00am

Samsung is focusing on profitability in the "post-smartphone era"

 

With global smartphone shipment expected to slow down in the next few quarters, Samsung is reportedly adopting a new strategy to remain competitive.

According to Korea Times, a Samsung executive shared that the company has identified profitability as a priority in the post-smartphone era. However, the executive stressed that the strategy shift does not mean that Samsung is giving up on market share to its competitors.

"We have been seeking growth in terms of shipments for years. Samsung is preparing for the post-smartphone era and that's why our handset unit has identified profitability as a priority over growth," an executive at Samsung Electronics said.

"Samsung will keep the company-set share according to markets. We will launch promotional campaigns if we have to. But the company will be unlikely to initiate cash-intensive promotions to clear inventory and increase market share," he said.

The new strategy includes shipment numbers of 400 million smartphones every year and an increase in profit margin by up to 17% for Q2 2016. The executive also stated that the increasing popularity of budget Chinese smartphones and consumers' lukewarm response towards "fancy features" were the main reasons for Samsung to rethink its mobile strategy.

Source: Korea Times via SamMobile

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