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.
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.