Samsung says it expects continued tablet sales declines
Company cuts price of its Galaxy S6 smartphones in Europe, as profits drop for the fifth successive quarter
The market for tablets continues to soften as last week Samsung reported good sales in its semiconductor business, but weaker cellphone and tablet sales.
Overall, Samsung was able to report a three percent increase in revenue quarter-on-quarter, to KRW 48.54 trillion. But despite the launch of the Galaxy S6, earnings in smartphones were “quite marginal due to low smartphone shipments and an increase in marketing expenses for new product launches.”
Net income also fell 8 percent year over year, to KRW 5.75 trillion (about $4.94 million).
The company, meanwhile, said they expect lower tablet sales in 2015, while planning to launch a new tablet product later this year (are they possibly looking at launching a larger tablet, responding to rumors that Apple plans to do the same?).
In response to the bad news, Samsung announced that it would lower the price of its Galaxy S6 in Europe from €699 to €599.
Samsung continues its throw everything against the wall and see if something sticks strategy. The problem with this is that they have not been able to differentiate their products enough to compete against the iPhone. When priced basically even with the iPhone, Samsung’s higher priced products are not grabbing marketshare away. As I’ve said before, it is hardest to steal customers when customer satisfaction is high (ask Detroit about this).