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Today at its earning call, Samsung announced that it plans on announcing two new high-end devices within the next six months to counter a 19.6% drop in profit on a yearly basis.
Even though Samsung is still the number one smartphone manufacturer, its market share dwindled by nearly 7 percent in the previous quarter. This has led to its profit falling to 6.25 billion won — a first for it since the third quarter of 2011.
Samsung stated that it had overstated the smartphone demand, which led to an excess inventory. In addition, stiff competition from Chinese brands in the low-end market made its product less competitive.
“Prospects for growth remain unclear as competition over global market share intensifies in the mobile industry,” Samsung said.
The company does not expect things to improve in the second half of this year and expects its profit to drop further. To help increase investors confidence, Samsung announced that it would be releasing two new high-end smartphones to help boost its profit and market share.
While one of the device will feature a big screen (hint: the Galaxy Note 4), the other one will be made using “new materials”, probably hinting at the Galaxy Alpha.
[Via WSJ]
