Samsung announced its quarterly earnings today, and as a result of disappointing sales numbers from this year’s flagship Galaxy S6 and S6 edge launch, says it will drop the price of the two phones.
The company made this announcement in the earnings news release Wednesday:
“While the IT & Mobile Communications (IM) Division is expected to face a difficult business environment, the 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,” the statement reads. “New middle- and low-end models will also be introduced, and the IM Division will continue to work on improving efficiency of expenditures.”
Samsung’s results were lackluster across all major business units, with the exception of its silicon chip business. Operating profits fell 4 percent in the quarter, while net profits fell 8 percent. It was the tech giant’s fifth consecutive quarter of year-over-year profit declines.
The company’s mobile business reported an operating profit of 2.76 trillion won ($2.36 billion), down from 4.42 trillion won ($3.79 billion) a year earlier.
Part of the problem was that Samsung couldn’t get S6 phones into the distribution channel fast enough to answer demand, according to the company. Samsung said the supply problem has been resolved and it is looking forward to the launch of its Galaxy Note phone.
The new Galaxy Note will likely make its debut at an event Samsung has scheduled for August 13. We may also see a new Galaxy S6 edge plus variant.
Still, the launch of the new iPhone 6s this fall is likely to depress sales of Samsung premium phones in the third quarter. And analysts are also worried that demand in China and Europe is softening.
The Galaxy S6 and S6 edge were unveiled at Mobile World Congress in early March.