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After disappointing quarter, Samsung plans Galaxy S6 price cuts, new phones to boost sales

By dkpope
Jul 30, 2015
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  1. Samsung just turned in another quarter of falling sales and profits in the April to June period, which can be blamed on dwindling demand for the Galaxy S6 smartphone and high marketing costs.

    Net profit at Samsung was 5.75 trillion won (US$49 billion), down 8 percent compared with the same period a year ago, and sales fell 7 percent to 48.5 trillion won. While disappointing, these figures aren’t surprising -- they are in line with expectations published by Samsung earlier this month.

    Samsung led the smartphone market until recently when the popularity of Apple’s iPhone 6 and 6 Plus and the rise of lower-costs phones from Chinese vendors attacked Samsung at both the high and low ends of their product line.

    Samsung said that sales of the Galaxy S6 and S6 Edge were lower than expected.

    The company still made money, just a considerably more modest sum than this time last year. The quarter’s profit was 2.8 trillion won, down almost 38 percent on the same period of 2014.

    While Samsung struggles, their smartphone rival Apple continues to have record results. Apple sold 47.5 million phones in the quarter and had $49.6 billion in sales and a net profit of $10.7 billion -- both figures leaving Samsung far behind.

    Samsung’s plan to salvage the year includes boosting sales by reducing the price of the Galaxy S6 and introducing new large-screen models. It's safe to say Samsung is hoping that these changes will produce a hit and help turn their year around.

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  2. ikesmasher

    ikesmasher TS Evangelist Posts: 2,561   +862

    Please just ditch the stupid edge phone...
     
  3. Dukenukemx

    Dukenukemx TS Member Posts: 71   +16

    The Galaxy S6 is worse than the S5. No Sd card slot and the battery is stuck in the phone. Having a HTC One I can tell you that it sucks not removing the battery. Drop the voltage bellow a threshold and the phone refuses to charge and turn on. Just stupid. Worse is that taking it apart might break the phone cause it's nearly impossible to open it without spending on hour carefully prying it open.

    If I wanted an iPhone I'd buy an iPhone. The Asus Zenfone 2 though has an SD card, removable battery, and two sim card slots and it's dirt cheap. iGalaxy S6 is dumb.
     
    stewi0001 and Khanonate like this.
  4. ETF Soldier

    ETF Soldier TS Guru Posts: 377   +81

    I'd say it's to do with the lack of SD card, that is certainly what deterred me and I went for the LG G4 instead.
    It could also be due to the fact that other phone companies are actually putting out REAL competitors now, LG, Motorola, Google, HTC all have decent flagships now with not THAT many flaws.
    Also got decent competition from smaller companies like OnePlus, Blu, and Chinese competitors.
     
  5. Dibrol

    Dibrol TS Rookie

    When this cut will happen? I think the time has comed for that.
     
  6. Amy Grant

    Amy Grant TS Rookie

    Samsung if you are listening to ALL of your customers:

    1. Bring back replaceable battery.
    2. Bring back Micro SD Card.

    Only then will I buy a Samsung S7.
     
    Dibrol and stewi0001 like this.
  7. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 6,513   +2,057

    Get used to it or else go back to using your old Nokia 3310 because from here on out all phones will be made this way.
     
  8. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 6,513   +2,057

    When all phones are without replaceable batteries and microSD slots you're still gonna have to choose one. Who do you thinks gonna win, you or the manufacturer? Unfortunately that's the way things are going, we'll get used to it.
     
  9. trparky

    trparky TS Booster Posts: 156   +58

    I would love to have a hit of whatever these guys are smoking.

    So your sales numbers are down. What do you do? Oh yeah... release another device. That makes perfect sense! NOT! So instead of fixing the actual issue at hand they're going to throw darts at the wall hoping that one of them hits the mark.

    Samsung has thoroughly lost its way. They seem to be just releasing devices just to release new devices and that's not a plan that will end well, that's a plan that ends up burning cash.

    I don't know what these guys are thinking in the boardrooms of Samsung but they really do need to rethink their whole smartphone strategy because it's clearly not working.
     

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