Samsung will cut the price of its flagship smartphone, the Samsung Galaxy S6, after reporting a disappointing financial quarter.
At the beginning of July, Samsung revealed that it was expecting some deeply underwhelming second quarter results, and so it has proved.
The company's operating profits fell four percent to 6.9 trillion won (£3.8 billion), marking the company's seventh successive quarterly drop in profits.
Undoubtedly the most worrying trend here is Samsung's mobile department, which is traditionally its biggest money maker. With the Samsung Galaxy S6 and Galaxy S6 Edge released at the beginning of Q2, initial expectations were sky high.
Yet operating profits for the division slipped to 2.76 trillion won (£1.5 billion) from 4.42 trillion won (£2.4 billion) the same time last year.
Read More: Samsung Galaxy S6 vs Samsung Galaxy S6 Edge
As Bloomberg points out, one reason its latest phones didn't perform particularly well despite critical acclaim and heavy marketing is that the company misread customer demand. In particular, there was much more demand for the pricey Samsung Galaxy S6 Edge than it was expecting, and it was unable to meet that demand on the production line.
Such a price cut will likely lead to sales growth, of course, but it with margins squeezed it won't necessarily lead to increased profits. Especially with the looming threat of Apple's new phones on the horizon for the second half of the year.
See how the Samsung Galaxy S6 compares against a couple of its key rivals in the following video: