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Samsung Experiences A Case Of Marketing Misfire As Their Expected Saviour (The Galaxy S6) Failed To Save Them From A Profit Decline

Image Source: www.bidnessetc.com

You know that feeling when you find yourself faced with difficult choices, you can be staring at two options and almost literally feel torn between which one to choose or put more efforts on. Apparently Samsung was faced with this dilemma and they ended putting so much hope in a particular choice only to have it dashed to the wall.

Reports have it that the Galaxy S6 has failed to entice enough customers to spike an increase in its sales. Samsung also confirmed it as they have warned that the second quarter profit results would fail to live up to expectations as the operating income fell by 4%  to 6.9 trillion won ($6.13 billion) from 7.1 trillion won in the same period last year.

Screen Shot 2015-07-07 at 6.31.47 PM

One of the factors responsible for this decline according to  Yoo Eui-hyung in an interview with Bloomberg was that “The demand for the Edge model is exceeding supply, while the other version isn’t selling well given its limited differences with the iPhone 6.”  A Seoul-based analyst  Greg Roh also had this to say: “S6 didn’t sell as well as the market had hoped for, partly because of continued outperforming of iPhones combined with the supply constraint.”

Screen Shot 2015-07-07 at 6.52.33 PM

What Samsung is currently experiencing, in summary, is a case of Marketing Misfire where the Samsung S6 that has more units failed to meet the sales expectation as opposed to the Samsung Edge that has fewer units but had a high demand.

By the way, in case you are wondering why Samsung is not changing their strategy and looking to produce more S6 edge devices, it would interest you to note that as a result of the complexity of the Edge’s design and production process, they might not be able to produce more units within a short time.  

 Can someone caption this situation in one word?

4 Comments

  1. vjsmiles July 7, 2015
    • Kay July 8, 2015
  2. vjsmiles July 8, 2015
  3. Gori August 4, 2015

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