Manufacturer to focus more on the mid-to-low range market after admitting that high-end smartphone sales in Q3 were “somewhat weak”
Samsung is to revamp its smartphone strategy to focus more on the mid-to-low-end segment following a 60 per cent slump in profits in Q3.
During an earnings conference call with analysts, the Korean manufacturer revealed third quarter profits had fallen to Won4.1 trillion (£2.4 billion), its lowest in more than three years. This was in line with guidance provided earlier this month.
Operating income from its mobile business, which had contributed more than half of its total earnings, decreased from Won6.7 trillion (£4 billion) from a year earlier to Won1.75 trillion (£1 billion). Quarterly sales fell 20 per cent to Won47.4 trillion (£28.1 billion).
Samsung senior vice president Kim Hyun-joon admitted sales of its high-end smartphones, which includes its flagship Galaxy S5 (pictured), were disappointing, and that an overhaul of its strategy would see it concentrate more on the mid-to-low end sector.
“Our high-end smartphone result was somewhat weak,” he said. “We will fundamentally reform our product portfolio.
“The mid-to-low end market is growing rapidly, and we plan to respond actively in order to capitalise on that growth.”
According to the latest figures from analyst firm Strategy Analytics, Samsung’s global market share fell to 24.7 per cent in Q3 from 35 per cent a year ago. It shipped 79.2 million smartphones in the quarter, down from 88.4 million in the same three-month period 12 months ago.