Samsung to Slim Down Smartphone Lineup

Samsung has decided to reduce its lineup of smartphones by around 30 percent next year and keep its lead over Chinese rivals by focusing on high-quality, mid-priced handsets.

The electronics giant, whose profit margins are relatively small because of the vast array of models it tends to throw out in case they stick, unveiled its latest strategy at an investor blitz in New York on Monday.

Investor relations chief Robert Yi said, "In 2015, we will reduce the number of smartphone models by one fourth to one third compared to this year. That will give us a chance to lower prices through mass production. In low- to mid-market products, price is the most important thing, and for high-end products it's innovation."

But given that Samsung has released around 100 different smartphone models each year, there will now probably still be about 60-70.

Samsung's shift appears to take a leaf out of rival Apple's much more austere strategy of releasing just one new iPhone and iPad a year. It will now focus on core products such as the Galaxy S and Galaxy Note series.

Yi also took a jab at China's Xiaomi, which has emerged as a formidable rival. "They have created a good user experience that caters for the needs of Chinese consumers," he said. "But I don't know if it will work elsewhere."

/Bloomberg

Samsung also decided to bolster its semiconductor business, which posted a larger operating profit than the smartphone division in the third quarter of this year. The electronics giant has the most advanced semiconductor manufacturing process with 14 nanometer technology.

Industry watchers believe Samsung will use its technological prowess to roll out next-generation application processors for Apple's iPhones and iPads.

Affiliate Samsung Display, which also took part in the event, vowed to reduce its dependence on Samsung Electronics to prevent business risks. Samsung Display vice president Lee Chang-hoon said his company will boost the amount of orders it receives from outside the Samsung Group to 50 percent of total orders. Samsung Display currently sells 75 percent of its output to Samsung Electronics.

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