Categories: MobilitySmartphones

Samsung Will Discount Galaxy S6 Phones After Major Profit Drop

Samsung has announced it will be slashing the price of its flagship smartphones following disappointing sales results.

The South Korean manufacturer will be ‘adjusting’ the price of both the Samsung Galaxy S6 and Galaxy S6 Edge as it revealed it had not hit its sales goal for its most recent devices.

The announcement came as the company revealed that profits for its mobile device division fell to 2.76 trillion won (£1.50bn) from 4.42 trillion won (£2.41bn) a year earlier, and said it expects a slower second half of the year as Apple releases its newest devices.

Challenging

“While 2H 2015 is expected to present mounting challenges, the company will try to improve earnings,” Samsung said in a statement.

Overall, Samsung recorded an eight percent drop in net profits in its second quarter 2015 financial results today, falling to 5.75 trillion won (£3.2bn).

The company blamed the fall in its device sales on failing to respond to the demand for the Galaxy S6 and S6 Edge, both of which were revealed at Mobile World Congress back in March.

It will now be looking to bounce back from this disappointment with the release of several new premium devices, with an event scheduled for August 13 expected to see the revealing of the Galaxy Note 5 and the Galaxy S6 Edge +.

However other parts of Samsung’s business also fell below expectations, including its television and appliances division, which posted a 210 billion won (£115m) profit, down from last year’s 770 billion won (£422m). Samsung says it is planning to expand its premium model line-up, with new curved TVs and other smart home products in order to remedy that.

In brighter news, the company’s memory chip and processor division recorded a healthy 1.54 trillion won (£832m) profit, and should see further growth if the rumours of it powering the next iPhones are true.

What do you know about the smartphones of 2015 so far? Try our quiz!

MWC 2015 - Hands-on with the Samsung Galaxy S6 and Galaxy S6 Edge

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Mike Moore

Michael Moore joined TechWeek Europe in January 2014 as a trainee before graduating to Reporter later that year. He covers a wide range of topics, including but not limited to mobile devices, wearable tech, the Internet of Things, and financial technology.

View Comments

  • No surprises, they got the design of the S6 totally and utterly wrong, they tried to be an iPhone, and customers buy Samsung because they are not an iPhone!

    Get back to changeable batteries and waterproof and I will buy. To me (and appears many others as well) the S6 is a non starter compared to the S5 that hit all the right spots.

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