In an effort to boost slumping sales, Samsung plans to cut prices and launch a new model with a larger screen later this year.
In a sign of what some will undoubtedly consider desperation, Samsung SSNLF will soon lower the price of its flagship smartphones. The South Korean company said as much in its second quarter earnings report on Wednesday. Well, to be exact, the company said it would begin “flexibly adjusting the price of the Galaxy S6 and S6 edge.”
The concession comes weeks after the company lowered analyst expectations and blamed lower-than-expected sales on miscalculating demand for the S6 Edge—a device with an innovative, if not gimmicky, curved screen on either edge. Samsung officials said it’s now able to meet demand and has addressed supply issues for the mobile device.
Additionally, the company announced plans to launch a new smartphone with a larger screen in the second half of 2015. Although it’s safe to expect this new device will launch sooner rather than later, since Samsung recently invited press to attend its next major product launch event called “Unpacked 2015” on August 13. It’s also widely expected that Samsung will unveil the Galaxy Note 5 and Galaxy S6 Edge Plus at the event. Both devices are said to offer a 5.7-inch screen, faster processors, and sleek designs.
A recent International Data Corporation (IDC) report showed Samsung’s global market share in the second quarter of 2015 declined 3.1%, while Apple AAPL gained 2.4% when compared to the same quarter last year.
Samsung’s final earnings matched its previous report, with operating profit officially down 4% to 6.9 trillion won ($6.1 billion) in the second quarter year-over-year. Meanwhile, sales were down 8% to 48.54 trillion won ($41 billion) for the same time period, which means Samsung has now seen falling profits for the seventh straight quarter in a row.