A new report indicates that Samsung will ship fewer smartphones in 2016, cutting its production as demand for smartphones wanes. The report also states that the company will be focusing on its budget-priced models as opposed to its higher end flagship devices in the New Year.

It's been an interesting year for Samsung when it comes to smartphone sales, one that cannot really be labeled as a full-on success nor an unmitigated failure. The company introduced its new flagship Galaxy S6 and Galaxy S6 Edge early in the year, and the jury was out on whether the changes, which were implemented in the wake of disappointing sales of the prior year's flagship Galaxy S5 and strongly influenced by Apple's iPhone series design, were a move in the right direction. Sales of the models also proved to be neither a huge hit nor a dismal failure.

The same can be said for the Galaxy Note 5 and Galaxy S6 Edge+, introduced in August, both of which built upon the company's new Apple-influenced design aesthetic and eliminated two features that once differentiated Samsung from its main competitor — a removable battery and expandable storage slot.

Whether one or both of those features will return in the New Year with the introduction of the company's latest flagship Galaxy S7 series is still unclear, but according to a new report, it appears as if Samsung will shift its focus to its lower-end models while cutting overall production of handsets in 2016. The production cuts are not unexpected, as overall worldwide smartphone demand has dropped recently, with even Apple forced to cut iPhone 6s series production due to reduced interest.

Samsung has had success with some of its "budget" handsets lately and appears poised to capitalize on the popularity of its lower-priced handsets. According to a note by analysts at Bernstein Research: "The mid-end A-series and low-end J-Series posted a strong shipment growth. We had doubts that Samsung had a competitive advantage in this mid- and low-end segment, but the actual volume was a surprise."