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Samsung will reduce smartphone shipments next year due to falling demand

Samsung plans to reduce smartphone shipments next year due to lower consumer demand. KoreaTimes reports about it with reference to the representative of one of the partners of the South Korean brand.

As it became known, Samsung decided to change the focus to low-end models, the demand for which is growing in overseas markets. If you focus on the updated line of Galaxy A, as well as some other new products of medium and lower price segments, you can see that she really began to pay more attention to them.

According to one source, in 2016, Samsung plans to reduce smartphone shipments by 12% compared to year 2015. Another source said that next year the volume of the world’s supply of Korean tubes will be reduced to 420-430MHz million.

It should be noted that this strategy does not always bring the desired results. Announced its intention to concentrate on low-end phones in 2013 HTC has still not managed to strengthen its market position, and Mozilla recently stopped developing its own operating system Firefox OS for low-cost models, since users primarily are looking at convenience, then the cost of the devices.

Previously, Samsung has reduced the price of its flagship solutions in order to stimulate demand for them. As a result the company’s operating profit in the mobile segment in the third quarter of 2015 decreased 12.5% to $2.1 billion compared with $2.4 billion in the second quarter of this year.

This week some of our local retailers dropped the price of the flagship smartphone Samsung Galaxy S6. Now the device is sold at a price 32 000 rubles, that is, its value decreased by 18% compared with the previous level.

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