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Samsung’s New Strategy: Profits First, Sales Next

e88330b5a9cd88541cc4c322cb305e1fAndroid maybe the world’s most popular operating system, but given the fragmentation and rapidly falling prices of the handsets, it’s the race to the bottom for many manufacturers who are unlikely to survive in the post-smartphone era. Samsung recognized the threat as it changes the strategy for the upcoming period.

A high-level executive has mentioned in an interview that the galaxy maker is shifting its focus from sales towards profit. The Korean giant is also with a plan to offers less of the incentive programs which will result in a profit increase of 17% for the mobile division. But this doesn’t mean it is abandoning the low end and mid-range segment. It still has the 400 million devices per year target in its internal memo. But with the rising competition from the cheap Chinese smartphone manufacturers, it is changing its tactics by offering better services and software that can never be matched by the low resourced competitors such as Samsung pay and Gear VR compatibility.

“We have been seeking growth in terms of shipments for years. Samsung is preparing for the post-smartphone era and that’s why our handset unit has identified profitability as a priority over growth.

The Korean tech giant will keep the company-set share according to markets. We will launch promotional campaigns if we have to. But the company will be unlikely to initiate cash-intensive promotions to clear inventory and increase market share.” Said the Samsung executive.

With the decline of the smartphone sales inevitable, Samsung is looking towards the period post the smartphone era. It recognizes that the future is full of subscription services and virtual reality gaming. So it naturally invests more in wearable technologies, services such as Samsung pay and Gear VR world.

It is even preparing some exciting devices such as phones with bendable and foldable displays.

Looks like the future has truly arrived for Samsung.

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