Samsung shares plummet to two-year low following iPhone 6 launch, early Galaxy Note 4 launch to counter the iPhone 6 Plus67
The iPhone 6 pre-orders came across as "unexpectedly strong" for Samsung, which also reduced its profit estimate to 4.7 trillion won from 5.7 trillion won (1 trln. won = 950,498,000 USD) and acknowledged that its positions in China and India are weakened by smaller rivals that offer cheap, fully-featured handsets . The situation in the Chinese market is made even worse for Samsung by the government asking its three state-owned carriers to lower promotional spending (including subsidies) over the next three years by a combined $6.5 billion.
To defend its positions, the company will continue its promotional efforts, and is about to release its new Galaxy Note 4 handsets earlier than planned to counter the iPhone 6's strong launch. As it already has a direct competitor to the iPhone 6 in the face of the Galaxy Alpha, this time Samsung will be trying to combat the larger iPhone 6 Plus' offensive in the big-screen smartphone segment.
Still, the Galaxy Note 4 is an extremely compelling device, and Samsung's increased marketing push could give it its much sought-after success.