Samsung’s Star Falls with the Galaxy S6, S6 Edge

South Korean electronics giant Samsung took a big gamble on its flagship Galaxy S6 and S6 Edge smartphones, but apparently failed to hit the jackpot, according to new earnings results. Both SamsungEUs net earnings and revenue dipped in the companyEUs second fiscal quarter as the two phones failed to provide the boost the company was counting on. Now, Samsung is suggesting that it might reduce the prices of the phones to charge sales.

Overall, SamsungEUs net income in the second quarter was $4.9 billion, down 8 percent from $5.3 billion in the same quarter of 2014. Total company sales dropped 7.2 percent year-over-year to $41.3 billion. Sales in the company's mobile division dropped 7.3 percent from a year ago to $21.73 billion. The mobile unit made an operating profit of $2.35 billion -- a sharp drop from the $3.76 billion it raked in during the same quarter a year ago.

Different Enough?

The results might be indicative of the tough battle Samsung faces in trying to gain market share from Apple, whose iPhone is the dominant player in smartphones. Also hurting Samsung are the many inexpensive smartphones made by Chinese manufacturers.

The Galaxy S6, which starts at $199 with a 2-year plan or $695 off contract, has received mostly favorable reviews. The smartphone has a 5.1-inch 2560x1440 Quad HD AMOLED display with a resolution of 1,440x2,560 pixels, and is powered by a 64-bit, octa-core Exynos 7420 processor. It also comes with a rear-facing 20-megapixel camera, with a 5-megapixel shooter facing forward.

On the eve of phone's release in April, however, many analysts wondered whether the features were enticing enough to convince buyers to upgrade from their existing Galaxy S5 phones, let alone spring for an S6 instead of a comparable smartphone from a competitor.

Price Adjustment

ThereEUs no word yet on how Samsung plans to...

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