Date
22 October 2017
Samsung has seen its profits plunge as Chinese smartphone rivals such as Lenovo and Xiaomi have gained strong foothold in the mid-to-low end segment. Photo: Bloomberg
Samsung has seen its profits plunge as Chinese smartphone rivals such as Lenovo and Xiaomi have gained strong foothold in the mid-to-low end segment. Photo: Bloomberg

Samsung plans smartphone revamp amid earnings slide

Samsung Electronics Co. said on Thursday that it will overhaul its smartphone line-up to take on rivals in the rapidly growing mid-to-low range segment, Reuters reported.

“The mid-to-low end market is growing rapidly, and we plan to respond actively in order to capitalize on that growth,” senior vice president Kim Hyun-joon was quoted as saying during a conference call with analysts.

The announcement came as the South Korean electronics giant reported its worst third-quarter profit in more than three years, with operating profit plunging 60.1 percent from a year earlier to 4.1 trillion won (US$3.9 billion), the report noted.

Profit at the mobile division fell 73.9 percent to 1.75 trillion won in the three months to September, its worst performance since the second quarter of 2011, according to the report.

Samsung’s global smartphone market share declined in annual terms for the third straight quarter in July-September, as it lagged Apple Inc in the premium segment and was overtaken by Chinese competitors such as Lenovo Group and Xiaomi Inc.

The company now intends to overhaul its lower-tier line-up to boost price competitiveness and use higher-quality components to set its devices apart. 

New mid-tier models will be launched in the fourth quarter as part of those efforts, the company’s head of investor relations, Robert Yi, was quoted as saying.

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RC

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