Samsung is struggling with declining smartphone sales and lowers prices Galaxy S6

Samsung will ‘strategically adjust’ the prices of the Galaxy S6 to stimulate sales of its high-end device. The group delivered fewer smartphones, due to the declining demand for cheaper and older devices in the past quarter.

In contrast to the declining sales, the average price of a delivered Samsung device increased. Samsung will therefore continue to focus on the sale of high-end models in the coming months. This should be done through a ‘strategic adjustment’ of the price of the S6 and new large-screen models. The Korean company reports this in an explanation of the quarterly figures.

Such an adjustment generally entails a reduction, but it is not clear whether this will also apply to the Galaxy S6 Edge. In previous months, reports emerged that demand for the more expensive Edge, with a curved screen, was higher than Samsung expected and that the company was unable to keep up with production. The devices with a large screen where Samsung has it are the Note 5 and the S6 Plus, which are expected to be announced on August 13.

Samsung expects the demand for smartphones to increase in the second half of 2015, but not by much. Samsung makes this announcement after a quarter in which the turnover of the mobile division increased slightly compared to a quarter earlier, but decreased compared to a year ago. In addition, operating profit decreased 38 percent compared to last year to 2.76 trillion Korean won, or 2.1 billion euros.

Samsung’s overall profit fell 8 percent in one year. It was the fifth consecutive quarterly profit decline. The semiconductor branch of Samsung did good business due to increased demand for DDR4 memory, NAND memory for SSDs and 14nm processors. Samsung also supplied fewer LCD TVs, but the display division’s profits increased due to increased sales of more expensive large TVs and UHD models. In the coming period, Samsung will focus on the sale of affordable curved TVs and UHD televisions.