Overall results for Samsung have not been impressive lately, as the electronics giant saw both revenue and profit decrease as the overall smartphone market share dropped from 32% to 25%. In China Xiaomi has taken the top spot and competition is increasing from all sides not just Apple with Motorola, LG and Huawei increasing their market share.
So while the iPhone 6 gave Apple a record quarter and 4 million devices were sold the first day and 10 million over the first weekend, Samsung is struggling with sales of the flagship Galaxy S5.
According to the Wall Street Journal, a big reason for the bad numbers of the mobile division is the fact that the flagship Galaxy S5 is selling well below expectations. Sales for the last three month came in at 12 million units, 40% below what the company had forecasted. The Galaxy S4 sold 16 million units in the same time period.
According to WSJ, sales in China has declined by 50%, the only market which remains stable is the U.S.
Samsung is now increasing their marketing spend and plan to offer more discounts during the holiday season in an attempt to win back market share and clear warehouses.