Samsung to focus on budget phones, cut total smartphone shipments in 2016

Samsung logoAs 2015 comes to an end, a year that saw Samsung do well in the low to mid-range area of the smartphone market with models like the Samsung Galaxy J5, it would appear that the manufacturer is going to stop focusing on its high-end models. According to an unnamed Samsung partner who spoke with the Korea Times, Samsung is going to lower smartphone shipments by 12% in 2016. After taking that drop into consideration, Samsung is apparently planning on shipping between 420 million and 430 million units next year.

The report adds that big things are expected in 2016 from the next iteration of the Samsung Galaxy A series, and the Samsung Galaxy J line. Having said that, the company still is counting on its flagship models like the Samsung Galaxy S7 and the Samsung Galaxy S7 edge to help it stay on top of the global smartphone market.

"The mid-end A-series and low-end J-Series posted a strong shipment growth. We had doubts that Samsung had a competitive advantage in this mid- and low-end segment, but the actual volume was a surprise."-Bernstein Research

While the report says that Samsung is cutting smartphone production next year, it did note that the decline is not based on a drop in demand for Samsung branded handsets specifically. Instead, the Korea Times says that the entire smartphone market is suffering through a bit of a slowdown.

Source: phoneArena

Tags: Samsung, smartphones

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