This seems to be a recurring trend with Samsung as of late – disappointing sales. The company’s predictions for the second quarter of this year were correct, it didn’t make any of its goals for sales and the overall profits dropped.
The profits for the company dropped by four percent to $5.9 billion and the mobile division of Samsung dropped to $2.4 billion, which last year was $3.8 billion. To remedy this, Samsung has said that it is planning on “adjusting” the pricing of the Galaxy S6 and S6 Edge – this will then hopefully help the company keep up with Apple as each quarter it is smashing previous records and selling loads of phones. Later this year in September Apple is expected to launch the new iPhone 6s and iPhone 6s Plus which are expected to outsell the iPhone 6. Also, something that will come before the new iPhones is that Samsung is planning on launching a new Galaxy Note phone in August 13.
Samsung has said that it is planning on “adjusting” the pricing of the Galaxy S6
It isn’t just the mobile phone and tablet business side of Samsung that isn’t doing so well, the devision which makes appliances such as TVs, washing machines and fridges also saw a drop in profit from $660 million to $180 million, which is quite a significant drop. Samsung is said to be introducing more curved TVs into the product line – which should improve that.
Bloomberg has explained why Samsung has seen a quite frankly huge drop in sales for the Galaxy line, it’s because it didn’t expect that many people to want the Galaxy S6 Edge and basically it couldn’t deal with the demand. Also the S6 Edge is reportedly more difficult to manufacture – which lead to customers purchasing something else most likely as to the wait times.
A&T Tech Spin
This is actually the fifth profit decline in a row for Samsung and having disappointing sales for the latest flagship phones doesn’t help, as well the iPhone 6 which was introduced last September eating into the target market for Samsung customers who want a large screen.
Just recently, Apple announced record smashing profits and a lot of customers who would have purchased a large screen phone from Samsung have most likely plumped for the iPhone 6 Plus.