2015 has been a tough year so far for the established Android smartphone manufacturers, as market shares shift and revenues remain sluggish. As part of its Q2 earnings report, Samsung has stated that it will be adjusting the price of its flagship Galaxy S6 and S6 Edge smartphones, in order to maintain sales momentum.
Samsung did not give a date for the price adjustment, nor did the company state exactly what sort of reduction in price we are likely to see. It is possible that the price may change around the launch of Samsung new premium smartphones in August, when the company will launch the Galaxy Note 5 and the Galaxy S6 Edge Plus.
“the IT & Mobile Communications (IM) Division is expected to face a difficult business environment, the sales momentum for high-end products will be maintained by adjusting the price of the Galaxy S6 and S6 edge and introducing new premium smartphone models.”
Broadly speaking, 2015 has seen the market for lower cost, higher tier smartphones continue to grow, which, combined with premium product fatigue, is taking a toll on smartphone sales from LG, HTC, Samsung, and others. With more compelling products in this category announced just recently, see the OnePlus 2 or Moto X Style, it seems that even the very best phones on the market can’t hide from this price pressure.
A similar effect can be spotted in the low and mid-tier markets, with local manufacturers and cheaper Chinese brands flooding emerging markets with cost effective products. While some major players, like LG, have managed to adapt, Samsung’s products have not quite kept up with the competition.
A price cut for the Galaxy S6 and S6 Edge is great news for anyone who has been holding out on a purchase, although we will have to wait and see if this is enough to boost Samsung’s sale figures in the remaining quarters.