Samsung is dropping prices on its flagship smartphone models after a dip in sales caused the Korean tech giant’s profits to slide for the seventh consecutive quarter.
The company reported operating profits falling four per cent to 6.9tn won (£3.9bn), in line with guidance released earlier this month, which warned sales of high-end smartphone Galaxy S6 were not living up to expectations, thanks to tough competition with Apple’s iPhone.
To combat slowing sales and Apple’s rising popularity, Samsung has announced price cuts, suggesting the price of the Galaxy S6 and S6 Edge will be “adjusted” to boost growth.
In its earnings report, the company said:
While the second half of 2015 is expected to present mounting challenges, the company will try to improve earnings.
The “mounting challenges” referred to a decline in sales, which is likely to get steeper after Apple launches its hotly-anticipated new smartphone(s) this autumn.
To compete with the new Apple release, Samsung has also brought forward the launch of the new Galaxy Note to August.
Samsung shares slipped 3.8 per cent after the earnings report, and are down 8.4 per cent over the year.