Despite aggressive promotion, lacklustre sales of Samsung’s flagship mobile phones, the Galaxy S6 and S6 Edge have led to a disappointing second quarter report especially for the mobile division of the company which has prompted the tech giant to slash the prices of two of its flagship devices, the Galaxy S6 and S6 Edge.
Samsung Witnesses Fall in the Sales of S6 and S6 Edge for Second Quarter in Europe
According to the quarterly report, the company’s net profit fell by 8% from $5.33 billion to $4.93 billion. Inefficient pricing of the mobile devices is primarily attributed as the cause of lack of sales. Samsung had initially priced the S6 at €699 and the S6 edge at €799 in Europe, both of which were above the price of its competitors, the iPhone 6 and 6+.
“A shortfall in the supply of the Galaxy S6 Edge in the first half of this year is already being addressed. In the latter half, our company will make the price of the Galaxy S6 and S6 Edge flexible, in line with market conditions.”
Said Park Jin Young, executive Samsung electronics’ IT and Mobile division.
The company is set to unveil its latest mobile devices, the S6 Edge+ and a phablet (phone+tablet), Note 5, at a media event in New York on the 13th of August. Experts are of the opinion that in order to make room for these devices the price of both the Galaxy S6 and S6 Edge will reduce by €100, retailing at €599 and €699 respectively. The €100 cut will make room for Samsung to add the two new models to its portfolio of mobile devices. Industry analysts expect the S6 Edge+ to retail at €800 which will be €50 cheaper than the original retail price of the Galaxy S6 at the time of its launch.
Samsung is expecting high from the launch of its upcoming mobiles that are going to be launched on 13th August, 2015.