Samsung plots Galaxy S6 price cut, new phones to help business

Samsung is set to slash the price of its flagship Galaxy S6 smartphone after reporting a Q2 fall in mobile profits of 37.6 per cent.

The firm has brought forward the launch of its latest Galaxy Note phone to August from September, while a person familiar with the matter told Reuters that it plans a larger version of the S6 edge. Its operating profits fell four percent to 6.9 trillion won ($5.9 billion), and the mobile division’s, in particular, slid to 2.76 trillion won ($2.4 billion) from 4.42 trillion won ($3.8 billion) from the same quarter past year.

A quarterly survey by research firm IDC showed the global market for smartphones grew 11.6 percent from a year ago to 337.2 million units, the second highest quarterly total on record.

The company also miscalculated demand for its curved-screen Galaxy S6 Edge phones, leading to a supply shortage that ate into profits.

Samsung has released its financial results for the second quarter of 2015 and they continue a disappointing trend.

Samsung reported a profit of 5.75 trillion Korean won (US$4.9bn), down from 6.25 trillion a year ago.

To counter the loss, Samsung will now “flexibly adjust” the price of the S6 and launch new mid to low-end products in a bid to halt the reverse in the smartphone market.

The company will now be seeking to recoup losses by cutting the price of the Samsung Galaxy S6 and the S6 Edge.

The earnings increase is attributed largely to the strong sales in the Semiconductor Business.

That new model with a larger screen is likely the rumored Galaxy S6 Edge Plus. A robust performance at its semiconductor department helped narrow the overall profit decline. Simply put, Samsung failed to predict how popular the Galaxy S6 Edge would be.

Samsung’s smartphones are expected to stay prone to further price cuts as the South Korean electronics giant struggles to differentiate its products from the growing pool of competing smartphone models.

Samsung Samsung Electronics Co Ltd (KRX:005930) seems to be eating humble pie as its inability to compete effectively with Apple in the premium smartphone market resurfaces.