Some good news for Android lovers across the world who are looking for a new smartphone. In light of its very recent, but yet another disappointing quarterly earnings, Samsung is reportedly planning on cutting the price of its Galaxy S6 and S6 Edge handsets in an attempt to boost uptake and revenue. Earnings calls are always a difficult time for companies that appear to be in a transitional period. Samsung reported a net profit of approximately $4.9 billion, which represents a reduced profit of 8% from last year; not great news for the South Korean company.
Samsung’s earnings call also came with the admittance that the company is facing what it describes as, a “difficult business environment”, and that it has almost immediate plans to “adjust” the price of its Android powered Galaxy S6 and S6 Edge handsets to try and turn its revenue fortunes around. In addition to those price drops, we already know that Samsung is intending to release two new devices in the coming weeks, namely the Galaxy Note 5 and S6 Edge+.
The issue with the Galaxy S6 and S6 Edge doesn’t seem to be that it hasn’t resonated with consumers or made a splash in the market. According to popular opinion, part of the problem is that Samsung failed to distribute the units effectively across multiples channels to cater to consumer demand. The Korean giant also noted in its earnings call that it hopes those supply channel issues are now resolved and that it’s looking forward to watching users adopt and purchase the fifth-generation Note when it arrives next month.
As we have previously reported, the Galaxy Note 5 and Galaxy S6 Edge+ are looking likely to be introduced to the world at the dedicated Samsung Unpacked media event on August 13. It seems that Samsung has made a conscious attempt to excite the market for its plus sized devices and get them onto shelves prior to Apple introducing the iPhone 6s in September. Taking into account the reports that Tim Cook has allegedly asked for a record number of iPhone 6s devices to be manufactured, it looks like Samsung could be in for yet another tough third quarter.
Samsung’s silicon chip business may be performing above expectation levels but let’s hope we see a turnaround in its mobile business’s fortunes quickly.