With the competition in the smartphone market growing and profits margins going down, Samsung is now going to employ a new strategy for its smartphone division. Going forward, the company will focus on profit over growth, as revealed by one of the company’s executives.

The executive says that Samsung is preparing itself for the post-smartphone era with its new move. The company has been focusing on increasing its smartphone shipments all these years. However, this change in strategy does not mean that Samsung will let Chinese OEMs eat away into its market share.

“Samsung will keep the company-set share according to markets. We will launch promotional campaigns if we have to. But the company will be unlikely to initiate cash-intensive promotions to clear inventory and increase market share,” he said.

The Korean company plans on reducing the number of budget models that it launches almost every month and will also not enter into an aggressive price war that other Chinese OEMs are currently fighting. The report states that the less-than-optimal response towards “fancy features” and stiff competition from Chinese OEMs were among the key reasons for Samsung to revise its strategy.

Even with its revised strategy, Samsung expects to ship 400 million smartphones this year.

The Samsung executive noted that the company has already informed its shareholders of this change and that it expects to see its profit increase by up to 17 percent during Q2, 2016. This will likely be due to the Galaxy S7 and Galaxy S7 edge doing particularly well for the company.