Samsung handset orders to pick up in March, say supply chains
Sammi Huang, Taipei; Alex Wolfgram, DIGITIMES [Monday 2 February 2015]
Following a slowdown in January and February 2015, supply chains expect to see orders for handsets from Samsung Electronics pick up in March.
The first two months of each year are traditionally a slowdown period for supply chains as vendors hold off releasing new products until the second and third quarters. Heading into March, Samsung's supply chains will start gearing up for new handset orders and Samsung will reportedly aim to increase its presence in China as part of its strategy in 2015.
Samsung's move comes as more rumors spread in the industry that China's telecom providers are planning to issue a second wave of handset purchase subsidies in 2015 in order to spur growth for 4G units. Such subsidies were issued from 2013-2014 and largely attributed to smartphone growth in China, according to many market observers.
Industry sources from Samsung's supply chain meanwhile noted the company is planning to reduce its handset product line by 30% in order to focus on a more simplified and refined product mix. Samsung will still focus on emerging markets with entry-level and mid-range handsets, but will focus promoting specific products with a wide range of specifications that will cover various demand in the market rather than using more products to meet the demand.
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