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Samsung is planning to shut down ChatOn service in certain markets

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Last updated: November 24th, 2014 at 23:46 UTC+01:00

Samsung’s smartphone market share as well as profits are dwindling. In a bid to lower the expenses, Samsung is planning some major restructuring steps in management and plans to shut down certain unprofitable services. According to a latest report from Korea Times, Samsung will soon shut down its ChatOn instant messaging service in certain markets as a part of company’s strategy to restructure unprofitable businesses. The company’s official mentioned that Samsung’s IM service won’t be shut down in the markets where it has received positive reactions and reviews, though it isn’t clear specifically which markets he meant. Another executive from Samsung stated that ChatOn isn’t a business that can show improvement in the future. Competing with the likes of Viber, WhatsApp, WeChat, and BBM, ChatOn is currently being used in over 120 countries around the world through various platforms including Android, iOS, Windows Phone, BlackBerry, Windows 8, web, and some feature phones.

A Samsung official said, “When you talk about total numbers, ChatOn looks competitive as ChatOn is installed in all Samsung smartphones. The key issue is that usability of the application is low and that means the volume of transaction isn’t that much.”

Via | Source 1, Source 2

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