Samsung enthusiasts can look forward to price cuts on the Galaxy S6 and S6 Edge, as the world’s largest smartphone maker’s much vaunted flagship phones have failed to live up to initial expectations. Samsung’s net profit declined for the fifth quarter in a row and the company reported an annual decline of 38% in the mobile unit’s operating profit.
“Despite the launch of Galaxy S6, improvement to earnings was quite marginal due to low smartphone shipments and an increase in marketing expenses for new product launches,” Samsung said, in a post on its official blog today, reporting its fiscal second-quarter earnings, which was largely driven by the company’s semiconductor division.
“Sales momentum for high-end products will be maintained by adjusting the price of the Galaxy S6 and S6 Edge and introducing new premium smartphone models,” Samsung said, adding that “new middle- and low-end models will also be introduced.”
SEE ALSO: SAMSUNG OPENS BRANDS STORE IN NAIROBI CITY CENTRE
Despite being the only top manufacturer to lose market share globally, Samsung remains the biggest seller of smartphones by number of handsets sold. Samsung’s position in markets such as India, Middle East and Africa, and parts of Europe, “remained on par with last year … but weakened further in the US China and Latin America,” in a quarter that saw Chinese competitors grow further, Counterpoint Technology Market Research said in its latest quarterly research report.
China’s Huawei Technology Co. Ltd., for the first time, became the third-biggest smartphone maker worldwide, surpassing Microsoft Corp.’s Nokia phones, during the quarter. Samsung’s Galaxy J5 and J7 models, which were launched in India earlier this month, have seen strong pickup in a recent online sale of the handsets that have been priced aggressively in the 10,000 rupees (about $150) to 15,000 rupees bracket. (IBT)
NEXT READ: INFINIX UNVEILS ‘KILLER’ SMARTPHONE IN KENYA
