Samsung reported its second quarter earnings today and signaled some changes in its handset strategy.
Despite the release of its flagship handsets during the quarter, Samsung’s mobile phone business saw a 38% decline in profits when compared to the year-ago quarter.
The company admitted that it misjudged supply for the Galaxy S6 and S6 Edge handsets. It made too many of the flat-screened S6 and not enough of the curved S6 Edge. The phones did not sell as well as Samsung hoped.
In response, Samsung says it “plans to firmly maintain its sale of premium smartphones by flexibly adjusting the price of the Galaxy S6 and S6 Edge, and launching a new model with a larger screen.” Samsung has invited media to attend an event on August 13, where it is expected to reveal the Galaxy Note 5 along with a larger version of the S6 Edge.
Samsung has in years past launched its Galaxy Note handsets during the first week of September at the IFA trade show. Samsung did not spell out exactly how it might alter the price of the S6 and S6 Edge moving forward.
As a whole, Samsung recorded a second-quarter profit of $4.93 billion, a drop of about 8% year-over-year, on revenues of $41.7 billion.
