download (10).jpg (Photo : Reuters)
South Korean tech juggernaut Samsung Electronics is planning to reduce the number of its smartphone units that it will ship in 2015 by a third in an effort to slash prices amid the fierce competition in the Chinese market.
Samsung's plan was validated by a representative from the firm on Tuesday. The announcement was made during a New York City presentation by Samsung investor relations head Robert Yi.
According to Yi, Samsung will be reducing the number of smartphone units next year by at least one-quarter up to a third.
In addition, Samsung will be increasing its production of the remaining smartphone models that will be sold at a lower price to level with its Chinese competitors.
Samsung's net profit dropped by almost 50 percent in Q3 after a 20-percent decline in the second quarter.
Before the unfortunate sales decline, Samsung's revenue topped others for several years due to its top-selling flagship smartphone model, the Samsung Galaxy S.
But sales of the Galaxy S declined sharply in the high-end sector after the Apple iPhone 6 was released.
Meanwhile, in the mid- to low-end markets, it was quickly overtaken by Chinese smartphone makers Lenovo and Xiaomi, which held more than 30 percent of the Chinese mobile market share three months preceding September.
In terms of sales volume, Samsung still takes the lead. However, strategic market researcher and analyst Strategy Analytics reported that Samsung's global smartphone market share declined to less than 25 percent from last year's 35 percent.
