Samsung will come with fewer and cheaper smartphones in 2015

Samsung is going to cut back considerably in its range of smartphone models. According to the company, the range will be reduced by 25 to 30 percent to reduce costs. The Korean electronics giant also wants to compete with Chinese manufacturers with cheap models.

The phasing out of the number of different models should happen next year, Samsung said at an investor meeting in New York. The company has confirmed this to The Wall Street Journal. Samsung traditionally releases a large number of different smartphone models, but the electronics company is confronted with declining sales and profits.

By streamlining its range, Samsung can cut costs and thus compete more effectively with Chinese manufacturers, who are gaining market share with low-cost models. According to The Korea Times, Samsung will also focus more on competing on price with its Chinese competitors.

Samsung announced that it would use more parts for both the budget and midrange models. In addition, reducing the range should ensure that stocks and supply channels can be better managed.

Samsung’s market share has fallen from 35 percent in 2013 to 24.7 percent in 2014, according to research by Strategy Analytics. Xiaomi saw its market share increase from 2.1 to 5.6 percent during that period. In October, Samsung announced that its quarterly revenue was down 49 percent from a year earlier.