Samsung To Slash Galaxy S6, S6 Edge Prices To Boost Sales? Reports Show Drop In Earnings

By Staff Reporter

Jul 30, 2015 06:18 AM EDT

Due to a disappointing fiscal quarter, Samsung is planning on cutting down the prices of its Galaxy S6 and Galaxy S6 Edge smartphones in order to improve the company's yearly sales.

This was a decision made by the South Korean tech giant after releasing the profits report from April to June, according to PC World.

Based on the report, the company's net profit for the recent quarter was at 5.75 trillion won or around $49 billion. This figure is 8 percent lower than what Samsung earned during the same months last year.

This is almost the same situation that the company found itself in during the first quarter of this year. From January to March, Samsung sold around 81.1 million smartphone units, which was 4.4 million less than the figure reported by the company during the first quarter of 2014, CNET reported.

Hoping to recover from its insufficient first quarter sales, Samsung relied on the profits it will earn following the release of its flagship handsets the Galaxy S6 and Galaxy S6 Edge in April.

However, the company miscalculated the consumers' demand for the smartphones and was not able to produce enough units. It also struggled competing against Apple for the attention and support of consumers.

"Poor sales of [Galaxy] S6 only proved that it can't beat Apple in brand loyalty among users and just ended up being one of the many Androids," analyst Yoo Eui Hyung of Seoul-based Dongbu Securities Co. told Bloomberg.

As a solution, Samsung is considering offering customers with discount deals on the Galaxy S6 and Galaxy S6 Edge. The company believes doing so will help improve its overall sales for this year.

But, aside from slashing its devices' prices, the company is reportedly aiming to release a new high-end device at an earlier date. Reports indicated Samsung will launch the Galaxy Note 5 on Aug. 13, which goes against the company's traditional practice of unveiling new products in September during the IFA event.

Apparently, Samsung is targeting to stay ahead of Apple by debuting the Galaxy Note 5 before the latter's iPhone 6S, which is rumored to come out in September.