Next year, Samsung will be releasing the Galaxy S6 and Note 5 smartphones and they are expected to be cheaper than their respective predecessors. This was confirmed after Samsung revealed that it will be cutting costs in order for it to compete with China’s manufacturer, Xiaomi.
This sudden move by Samsung is to combat falling profits. The announcement was made when Samsung held a business meeting to discuss on its quarterly margin.
Apparently, the South Korean tech-giant finally saw an end to its double-digits quarterly profit streak that stretches lasted for ten consecutive quarters. Instead of the usual 15% quarterly profit, the figures drop to a worrying 7%.
Aside from dragging the price of its flagship devices down, Samsung aims to reduce the number of smartphone models and units produce by 30%. Samsung plans to focus on the high-selling models and scrap those that have failed to sell well.
In addition to that, Samsung will be looking to share the same components for its low and mid-range model beginning next year. This will help the company save cost on purchasing parts and hardwares to develop the devices.
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