30 Jul 2015

Samsung to Adjust S6 & S6 Edge Prices Due to Declining Profits

It appears that people were confused. Earlier this year, Samsung announced its best smartphones to date with the duo of the Galaxy S6/S6 Edge. While those phones mark the peak for Samsung’s Android adventures so far, they’re undoubtedly too iPhone-like.

Seriously, what’s an Android phone without an SD card, non-removable battery and a design which will make Apple’s lawyers readying their legal papers even before the phone was released? Doesn’t it seem logical to buy the iPhone instead?
It appears that users thought so too, as for the fifth straight quarter, Samsung was unable to reverse its fortunes and turn its streak of declining profits around.
As is expected, Samsung expects a difficult business environment in the second half of the year too, but will fend off the competition by “adjusting the price” of the S6/S6 Edge flagships, which is another way of saying it will lower them. It will also release several other higher-end phones, such as the S6 Edge Plus and the successor to the Note 4, the Galaxy Note 5 which is said to be released a few months early to handle the iPhone’s pressure better.

Galaxy S6 and S6 Edge, while well reviewed, have failed to reverse Samsung’s declining profits

As it stands, the company was hit by two problems. For one, the Galaxy S6 wasn’t as popular as Samsung had hoped. Secondly, while the cool-looking S6 Edge with its curved display was in high demand, it is more difficult to produce and couldn’t be rolled out to customers soon enough. Expensive advertising campaigns further placed a dent in its profits.
While few people will debate that profits of $4.93 billion over revenues of $41.7 billion are something to pull your hair over, another concern is the shifting market share, which has declined to 22 percent compared to 25 percent a year ago in the same quarter.
For these minor niggles to not become major troubles, some decisive steps need to be taken, not the first of which for Samsung would be to create an identity of its own, and differentiate its products from that particular company more. If the upcoming devices are able to make that happen, we can call Samsung successful again.


Post a Comment