Samsung to launch two new high-end smartphones soon to reverse falling sales
In the wake of a disappointing earnings report, Samsung tried to reassure investors by revealing its comeback strategy for the next few months.
According to The Wall Street Journal, Kim Hyun-joon, senior vice president at Samsung Mobile told investors during the earnings call that the company is launching two high-end smartphones in the next six months. One model is reportedly coming with "a large screen" while the company will use "new materials" to make the other model.
The model with "a large screen" is likely to be the Galaxy Note 4, which is expected to be powered by the latest Exynos ModAP quad-core processor.The other model should be the fabled Galaxy Alpha with a metallic frame. Samsung should be unveiling the Galaxy Note 4 on September 3 before IFA 2014 while the Galaxy Alpha is rumored to be launched earlier on August 13.
Based on its latest earnings report, Samsung experienced its first year-over-year drop in net profit in almost three years for the second quarter of 2014. Apparently, stiff competition from Chinese phone makers and a recent hike in the local currency made its products less competitive in overseas markets. Its flagship smartphone, the Galaxy S5 reportedly did not sell as well as expected, which might have contributed to the loss in profits.
Samsung also will be introducing new low-end and midrange models with enhanced features to compete with the low-cost offerings from Chinese phone makers. With Apple likely to release bigger iPhones later this year, Samsung finds itself in a very difficult situation where it needs to act swiftly to defend its position across the various market segments.
Source: The Wall Street Journal