Samsung prepares to cut back smartphone production

As you’re no doubt aware, Samsung hasn’t been doing so well on the smartphone front lately – certainly not compared to its stellar success in the past.

The Galaxy S5, the new flagship for 2014, failed to unseat the old iPhone 5S and 5C handsets from their top selling spots in the UK earlier this year for any meaningful period of time, let alone the new iPhone 6 models.

Profits made on its devices have dropped to the lowest level in three years, with high-end models suffering particularly (and of course that’s where the most profit is), and last month Samsung promised a “fundamental reform” of its smartphone business.

It seems that this rejigging will involve a serious reduction in the amount of phones Samsung will produce next year. The number of handsets it will offer in 2015 is planned to be reduced by around 25 to 30 per cent, according to Robert Yi, Vice President and Head of Investor Relations at Samsung.

The Wall Street Journal (via Android Central) reports that the idea is to get operating profit back into double digits, where it has been solidly in the past – but it dropped to 7 per cent in Q3 this year. That’s actually the lowest level Samsung has seen since before it launched the first Galaxy smartphone, to give you an idea of how bad things have got, profit-wise.

Which phones will get the chop from Samsung’s range? That isn’t clear yet, but the company isn’t planning on dropping premium efforts. Rather, the cuts will come from the middle and low-end of its phone portfolio.