AppleInsider Staff
Just four months after launching the new Galaxy S6 and S6 Edge, Samsung has begun to drop the price of its flagship handsets in an apparent effort to jumpstart slumping sales and push its troubled mobile division further into the black.
Consumers in The Netherlands are the first to benefit from Samsung's new strategy, with the 32-gigabyte S6 now going for just €599 and the S6 Edge coming in at €699 in the European nation. The changes were first noted by BetaNews.
Samsung announced plans to rework Galaxy pricing last week after posting disappointing financial results in its second fiscal quarter. Mobile division profits dipped by 38 percent year-over-year — Â though they were up very slightly sequentially — Â which contributed to an overall 8-percent profit decline for the conglomerate.
Some reports have suggested that Samsung underestimated demand for the curved-display S6 Edge and overestimate demand for the more standard S6, leading to a shortfall in supply of the former and a glut of unsold units of the latter. The company is thought to be in the process of reshuffling its supply chain to compensate, but was forced to turn to price cuts in the interim.
The price cuts come just days before Samsung is rumored to announce a larger S6 variant — Â dubbed the S6 Edge+ — Â to take on Apple's wildly successful iPhone 6 Plus. The launch, which could come as soon as August 12, is also likely to bring a revamped Note 5 phablet.
Charles Martin
Malcolm Owen
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84 Comments
I have seen a few here, but everyone is still clamouring for the iPhone. My students want to buy my iPhone6 when the 6s comes out.
Yep, nothing like cutting the price and reducing the profits to help profits ... Oh wait a minute ... reminds me of that saying, 'when in a hole, stop digging.'
Yep, nothing like cutting the price and reducing the profits to help profits ... Oh wait a minute ... reminds me of that saying, 'when in a hole, stop digging.'
They have a lot of margin in their top end phones, it's the low end junk they sell that brings their overall margins down.
[quote name="AppleInsider" url="/t/187458/samsung-cuts-prices-for-galaxy-s6-s6-edge-by-100-euros-after-disappointing-financial-results#post_2755958"]Just four months after launching the new Galaxy S6 and S6 Edge, Samsung has begun to drop the price of its flagship handsets in an apparent effort to jumpstart slumping sales and push its troubled mobile division further into the black. [/quote] IMHO the price cuts would have more to do with new S models launching in less than a month.
[quote name="sog35" url="/t/187458/samsung-cuts-prices-for-galaxy-s6-s6-edge-by-100-euros-after-disappointing-financial-results#post_2755976"] Wrong. The sales are slumping. Look a their earnings for Q2. [/quote] Well of course we know that the sales were disappointing. That doesn't change the fact that new models launch in less than a month and existing stock needs to be cleared. Most companies run "sales" on existing models with significant inventory when new ones are imminent. If they were selling great there would almost certainly still be some price cuts on that soon-to-be-old stock. You know that, you're a smart guy.