As Samsung earnings continue to fall for a fifth straight quarter, the company's loss might prove to be the consumers' gain. The South Korean electronics giant indicated Thursday that it will slash prices this year on its Galaxy S6 smartphone to spur gains on the disappointing sales of its flagship line.
Samsung's overall earnings, which it reported Wednesday, fell 8 percent while profits declined 4 percent, according to the New York Daily News.
In a more drastic showing, sales in its mobile division plumetted by 38 percent in the April-June period when the new Galaxy S6, launched in April, was met with unexpected lower demand as rival Apple's iPhone 6 (and other Apple products) dominated the market, according to tapscape.
Following suit, the launch of the Galaxy S6 Edge, which comes with a curved screen, was marred with supply issues as Samsung underestimated consumer demand for the premium model.
As a result, analysts claim that it should be of little surprise that Samsung will cut costs.
"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 press release. "[T]he 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 made no comment on how much the price will drop, only saying, "There's a possibility that the third-quarter sales price could slightly drop."
So if you haven't purchased a Galaxy S6 yet, then wait until it does. While the new price is unknown, it will be improvement over the $680 price tag to purchase an unlocked model.
