Samsung Reducing Galaxy S6 Prices to Boost Sales

Now, Samsung is suggesting that it might reduce the prices of the phones to charge sales.

The semiconductor division achieved an operating profit of W3.4 trillion during the second quarter, the first time since the third quarter of 2010 that it surpassed W3 trillion.

The company’s overall earnings drop during the April-June quarter was 8% but it reported a much bigger decline of 38% in the mobile division’s income.

Sales have increased by almost 3 percent, from 47.12 trillion won (US$40.26 billion) in the previous quarter, while operating profits were up 15 percent from 5.98 trillion won (US$5.11 billion) in the prior quarter.

The results might be indicative of the tough battle Samsung faces in trying to gain market share from Apple, whose iPhone is the dominant player in smartphones.

“We will launch new high-end smartphones to maintain the current sales momentum”.

The Galaxy S6, which starts at $199 with a 2-year plan or $695 off contract, has received mostly favorable reviews.

The Samsung Galaxy J2 will come with a 5.7 inch display with a qHD resolution of 960 x 540 pixels, the handset will be powered by a quad core 1.3GHz processor and will come with 1GB of RAM. It also comes with a rear-facing 20-megapixel camera, with a 5-megapixel shooter facing forward. There’s no word yet on the exact prices for the existing Galaxy S6 models, but it should be just a matter of weeks…

“In the latter half, we will take a more flexible pricing policy for the Galaxy S6 and S6 Edge”, said Park Jin-young, executive director of Samsung’s mobile business division, hinting at price cuts to elevate the flagship phone sales.

The fall in profits has been linked to falling demand for older middle to low-end models.

This year, South Korea electronics and mobile company Samsung launched a couple of great new Android smartphones – the Galaxy S6 and the Galaxy S6 Edge.

The Korean tech giant announced an 8 per cent drop in second-quarter net profits at the company’s conference call on the day as its smartphone business remained sluggish on lackluster Galaxy S6 sales. Samsung’s market share in that category also fell, according to IDC.