Samsung cutting shipments and redoubling budget efforts in 2016

Samsung is the biggest mobile phone manufacturer by volume and most of those phones, it turns out, end up selling for less than $250 or $200. Insurgent competitor Apple definitely has the profits from planting fat margins onto its products. It’s also been closing the gap in shipments, but it still has a ways to go.

So, the chaebol may be taking the luxury of that ways to go by making plans to ship fewer phones next year — by up 12 percent, according to a domestic retailers group. The math comes out to about 425 million smartphones, give or take a few million.

Financial analysts have also been surprised at how popular the A- and J-series phones have been. Samsung’s Vietnam production plant accounts for over half of this year’s volume.

Remember that shipments don’t equate to sales, so this reduction we’re seeing may be just a bet on less overhead for the premium sector.

Source: Korea Times
Via: G for Games

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Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.