Samsung Reduces Retail Prices on Select Models
Samsung has reduced the retail prices on a number of their smartphones. This is to welcome in the festive season and hopefully to boost the company’s sales. Before we go into the why, here are the run down of models that have become much more affordable.
These prices are following the STAR Newspaper dated 18th July 2014 and is only for as far as we know, nationwide Malaysia. All dropped prices are reported to a permanent fixture so don’t expect the prices to go back to the original prices any time in the future. It is effective immediately at any Samsung retailer.
The Samsung Galaxy S5 will know put you back RM 2149 instead of RM 2399. The Galaxy Note 3 which was originally RM 2399 is now only RM 2299. The next in line is the Galaxy Note 3 Neo which has undergone a price reduction of RM300. The price of the device now is RM 1399. The Galaxy Grand 2 will cost consumers only RM999 instead of the original RM 1119. Lastly, the Galaxy S4 (octa-core, non-LTE) is now priced at RM 1499 instead of RM 1699.
Along with the announcement of a price reduction, Samsung has included an ad for it’s latest smartphone – the Galaxy Core 2 which is priced at RM 599. Launched over a fortnight ago, the gadget is powered by a 1.2GHz quad-core processor with 768MB of RAM, and features 4GB of internal storage with a microSD card slot that supports up to 64GB cards, a 4.5-inch 480 x 800 display, 5MP rear camera and a 2000mAh battery.
So why is Samsung undergoing a price cut? Unfortunately, the company has recently saw a fall in sales by 9 percent and a decrease in revenue by 24 percent. To aggravate the situation, a report from Reuters has reported that “Research firm Counterpoint’s survey of 35 markets accounting for nearly 90 percent of global sales found that sales for the eight-month-old iPhone 5s stood at 7 million in May, compared with about 5 million for Samsung’s flagship Galaxy S5, which was in just its second full month of sales after a late March release.”
Why exactly are users preferring Apple’s iPhone 5s to Samsung’s Galaxy S5? Simple – the price. Why not fork out a bit more and get the top of the line Apple iPhone instead of an expensive lower end Galaxy S5? The layman consumer can only differentiate product on price and well, Samsung may be pricing theirs way too high for consumer’s liking. Another main reason is that the South Korean tech giant is losing market share due to the massive amount of competitors. Sad but true that the smartphone industry is packed with companies offering more or less the same product with varying prices. Too many choices have muddled Samsung into the background. Once ex Samsung users fall in love with the other company’s products e.g. Sony, they ain’t never coming back.
It’s going to be a hard road for Samsung and if the company doesn’t come up with a plan, it is continuously going to experience a downfall. Hopefully, it won’t be another story like Nokia or Blackberry.