The Smartphone market is constantly changing, and that obliges manufacturers to undergo a continuous process of adaptation or to cope with the consequences of not doing so. In addition, it is not a way to operate almost inevitable for new manufacturers who want to position themselves but to the traditional, the leaders of the market, must also carry out.
Samsung, the current leader of the Smartphone market, has followed for years a fairly aggressive launch of terminals, with endless surnames. The Core, Prime and company arrived in waves and the Korean company promised to reduce its catalogue in 25%, because of that same now have a catalog more ordered and controlled.
Samsung touch him back to reduce
The problem with that Samsung is currently is not both in terms of the ungovernability of the catalog and its own profitability. According to sources close to the manufacturer from Bestitude, Samsung would be considering vary your annual releases strategy, reducing catalog and focusing on other types of fields, such as the attachments, to improve the global figures.
He mentioned, as it could not be otherwise, the Korean manufacturer would have the possibility of trimming margins, develop a more aggressive pricing policy to move much more its stock and to cope with the Chinese market, increasingly higher and higher, but this strategy seems to have been ruled out in the heart of Seoul.
Thus, to this cut of 25% of the catalogue which already started long ago It would follow another, possibly focusing on the terminals of low budget, there where new waves of Chinese manufacturers make more damage to Samsung, in such a way that they would continue competing in higher stages offer the added value of its catalog of accessories such as watches Gear S2 or virtual reality goggles Gear VR.
Samsung are confident that this new policy of releases which intended to implement have effect on the accounts of the company within a period of 12 to 18 months, by what we assume that they will be to work with decision of which terminals of today will not be never a renewal, although we assume to be the lines E and J, unconfirmed.
LG aims to promote the LG G5
Among Koreans go play, we could say, given that the news of this future cut in the Samsung catalogue has arrived accompanied by a similar move by an LG which already been constricting their releases around the world, in spite of local variants which continues to develop.
In LG, it happens that their sales are down to also push other manufacturers cause they come with strength to the market, or beginning to demonstrate their potential in spite of lead time between us. Not in vain, a few months ago we knew the news that both live and OPPO had managed to move to Xiaomi and the own LG in the ranking of world’s largest manufacturers, at least in very limited numbers.
LG reported losses in its division of smartphones in addition to their sales, 60 million units in 2015, seemed to follow a controlled descent to a forecast of approximately 50 million for this year. As a result of this decline, which now stands at a 12.3% less compared to previous year, in LG they plan to take on the issue.
To achieve this, In addition to reducing its catalogue terminals with a view to future releases, LG will send members of your team’s mobile division to the division of vehicles, doing so the part of the company responsible for smartphones have to endure one minor structural expenditure.
LG G5 seems to be having a good reception, however, although from LG they recognize to be failing in the distribution, which is pretty tight in the estimation of lower sales than would be obtained. Thus, the machinery is would be launching right now for to correct these problems and improve both the manufacturing and attention to the demand for own distributors.