While Samsung may not be selling as many Galaxy 6 models they are reaping higher margins especially from the Galaxy 6 Edge said a Telstra executive who did not want to be quoted.
The Korean Company recently said that they have shipped 10 million units of the new Samsung Galaxy S6 in the last month which is down on the 11 million Galaxy S5 models shipped during a similar period in 2014, however this may not be a bad thing as the Samsung Galaxy S6 is selling for $220 more than the Galaxy S5.
When it was launched the Galaxy S5 had a recommended retail price of $929 while the new Samsung Galaxy 6 Edge is selling for $1,149.
Carriers have told ChannelNews that while many consumers are buying cheaper pre-paid phones the market for premium smartphones is still strong.
A Telstra store manager said “Business executives and mothers are primarily buying a premium smartphone for themselves and a cheaper prepaid for their children. We are also seeing strong demand for new premium models on plans as opposed to outright purchase”.
In their last earnings report Samsung profits fell almost 30% from the year-ago quarter, mostly due to the decline in smartphone sales. Galaxy S6 sales weren’t reflected in that quarter’s results however insiders are tipping a turnaround in Samsung fortunes when they report their second quarter results.
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