Samsung to Launch Fewer Phones in 2016 Due to Dip in Demand?

Samsung will reportedly ship lesser phones in 2016 in an effort to cut production costs, as demand for smartphones wanes.

In a report with Tech Times, the South Korean tech giant will be focusing more on budget smartphones in 2016, as opposed to higher priced models. Earlier this year, Samsung introduced its newest flagships, the Samsung Galaxy S6 and the Galaxy S6 Edge. When the phones were launched, the changes proved to be a step in the right direction, with many welcoming the new products. The sales were also relatively better than the Samsung Galaxy S5.

Sales of the latest flagship, however, were neither a huge hit or a failure. There were also some mixed reviews for the Galaxy Note 5 and Galaxy S6 Edge+, which were both introduced in August of this year. The company seems to have many Apple-influenced aesthetics in their designs, while also eliminating the removable battery and an expanded memory card slot. 

Again, these changes were met with mixed reviews as many felt that the expanded memory slot and the removable battery were some of the features that separated Samsung from Apple. On the other hand, there were those who praised the device's bold and innovative design, which was a far cry from its predecessors.

Samsung will reportedly launch its next generation flagship, the Samsung Galaxy S7 next year. While there are no concrete reports as of now as to the features or release date, a report with Phone Arena says that Samsung will be focusing more on its budget smartphone line, as opposed to launching higher end phones.

The website also said that Samsung is going to lower smartphone shipments by at least 12% next year. The South Korean company is apparently planning on shipping between 420 million and 430 million units next year.The company has enjoyed success in its Samsung Galaxy A and Samsung Galaxy J line this year.

The company hopes to mirror that success next year and has already banked on that strategy. A report from the website said that the sales from the mid-end A series and low-end J series came as a surprise to the company. They added that they had initial doubts that Samsung would be globally competitive in the mid-end and low-end segments of the smartphone markets, but volumes in sales have proved otherwise.