Seoul, South Korea – Samsung (NASDAQ: SSNLF), the South Korean electronics and smartphones manufacturing giant, apparently saw a downfall in the profits of Quarter 2. According to the reports, Samsung Electronics is going through a profit downfall of around 8% in its Quarter 2, i.e. during the months April-June. The profit level decreased from 6.25 trillion won to 5.75 trillion won. Reports suggest that the profit level is decreasing since five quarters.
Samsung’s downfall in profit
Samsung announced that it will make a come-back in the market with new budget smartphones with big screen. It is believed that these smartphones will give a tough competition to its competitors. Samsung is facing challenge mostly from Apple iPhones and Chinese low range smartphones like Xiaomi. A latest Android smartphone was launched by Samsung in April with a hope to increase the sales. However, the smartphone could not perform well. Besides, Samsung had also brought the smartphones Galaxy S6 and S6 Edge in the market; but customers didn’t show much interest in it.
Bryan Ma, Vice President of client devices research at technology consultants IDC, told the BBC.
“While the numbers are in line with what’s been expected, the real story is that Samsung used to be this huge industry giant, dominating the smartphone field. And now that giant seems to be tumbling under pressure from Apple in the top-segment and cheaper Chinese competitors,”
Samsung’s challenges in upcoming 2015
In the second half of 2015, Samsung is planning to continue its smartphone selling on demand; but with a low rate. The price of smartphones will vary according to the market values. With these, the company will also launch new low and mid-range smartphones and large screen models which will certainly attract the customers. Its main emphasis will be on S6 and S6 Edge to adjust its price so that the sales of this phone will increase.
According to the vice president for mobile business, Park Jin-young, the company hopes to see its phone sales increase in the coming quarter with new large-screen and budget models to be launched.