In a bid to encourage investors, Samsung revealed its plan to release two new phones this year. Will it even matter now?
Samsung broke the news that its profits had dropped for the first time in three years. Earnings went down for the third consecutive quarter, reports the Wall Street Journal. Chagrined investors were left with no choice but to sell their stocks today, panning roughly $7.5 billion from Samsung's market capitalization, the Journal added.
Don't Miss: Find a Nintendo NES Classic in stock
Samsung's senior vice president for mobile communications, Kim Hyun-Joon, urged investors not to lose hope. He said that Samsung is planning to release two new phones this year. The first one, Kim Hyun-Joon says, will sport a large screen. The second, meanwhile, will be made of new materials.
The executive failed to elaborate the two phones, but they are likely to be the next-generation Galaxy Note and the successor to the Galaxy S5.
For the record, Samsung is the world's largest mobile phone manufacturer. The company has a dizzying smorgasbord of phones and tablets. But that's the problem. Instead of working on features that appeal to consumers, the company opted to spend its money on rehashed phones.
It also didn't help when Xiaomi came into the picture to eat Samsung's lunch. Soon, Apple will eat Samsung's dinner too, unless it changes its strategy. Samsung's net profit fell 20 percent this quarter, from 7.77 trillion won last year to 6.25 trillion won this quarter.
Source: Wall Street Journal