SAMSUNG IS CONSIDERING adjusting the prices of both the Galaxy S6 and S6 Edge after less than impressive sales contributed to a slump in its smartphone earnings.
The company posted a fall of 8% in its second quarter and promised “flexible” pricing of its new flagship smartphone “depending on marketing circumstances” while launching new devices.
Despite a positive reception, the Galaxy S6 was hit by two problems. The first was it underestimated the demand for the S6 Edge, a device that features curved screens on both sides, which production and supply wasn’t able to match. On the other hand, the standard Galaxy S6 didn’t do as well as expected.
Samsung says the second half of 2015 will be challenging for the company. Not only does it have to compete against cheaper high-end smartphones from the likes of Xiaomi, Motorola and OnePlus, it will also have to fend off Apple which will announce the latest additions to its iPhone range in September.
The second half of Samsung’s year will begin with an Galaxy Unpacked event on 13th August, where it’s likely to announce the latest addition to the Galaxy Note as well as a larger S6 Edge.
The world’s largest smartphone maker said net profit for the April-June period stood at 5.75 trillion won (€4.5 billion), down from 6.25 trillion won a year ago and slightly below analyst estimates.
In an effort to see off smaller rivals nipping at its heels in emerging markets, Samsung slimmed down its line of low- and mid-range smartphones last year, and ramped up production of those that remained in a higher-volume, lower-price strategy.
At the same time, booming memory chip sales have managed to mitigate some of the slump elsewhere, thanks to tight supply and strong pricing.
(Additional reporting from AFP)
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