Samsung Galaxy S6, S6 Edge May Have A Price Cut

As the most recent quarterly earnings were announced, the company indicated that its handset division may not find it easy to work in the current market environment. The company added that the price of the flagship Samsung Galaxy S6 along with the Samsung Galaxy S6 Edge will be adjusted to sustain its sales momentum.

While Samsung did not provide the details of the adjustment, a source revealed that the smartphones may receive a price cut. The announcement came as the company revealed a decline in sales for its mobile and IT division by 8.4 percent. Its mobile division experienced a 7.3 percent decline in sales.

Samsung has noted a decline in sales after consumers started to select devices offered by its competitors. Smartphone deliveries used to account for two-thirds of the operating profit of the company, but recent quarters saw a considerable decline. This comes as the company felt pressure from low-cost handset vendors in emerging markets.

Samsung Galaxy S6, S6 Edge Price May Be Cut - image credit: samsung.com

Gartner revealed in May that the market share and smartphone sales declined in the first quarter of 2015. Around 81 million smartphones were sold by the company during the first quarter, which is about 4 million lower compared to the same period last year. The market share of the company also declined from 30.4 percent during the first quarter of 2014 to 24.2 percent this year.

The Wall Street Journal reported that the company shipped between 71 million and 76 million smartphones in the second quarter. After the Galaxy S5 did not make waves following its release into the market, the company was hoping that the Samsung Galaxy S6 and S6 Edge will perform better.

JK Shin, mobile head of Samsung, predicted a higher demand for its Galaxy S6 lineup. The company also revealed that production of the S6 Edge may be affected due to difficulties in producing its screen as well as its expected popularity.

The Samsung Galaxy S6 and S6 Edge feature metal casings, a departure from its practice of using a plastic casing. The S6 Edge comes with a screen curving along its side. The company also used its own chips for the two devices rather than obtaining processors from suppliers.

Posted by Melanie Mendoza on Friday July 31 2015, 9:32 AM EDT. All trademarks acknowledged. Filed under Shopping. Comments and Trackbacks closed. Follow responses: RSS 2.0