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Why Samsung’s slashing Galaxy prices

Samsung has announced plans to slash prices on its Galaxy S6 and S6 Edge smartphones, indicating an effort to boost lagging smartphone sales.

The tech giant reported second-quarter earnings on Wednesday and announced its "plans to firmly maintain its sale of premium smartphones by flexibly adjusting the price of the Galaxy S6 and S6 edge, and launching a new model with a larger screen." Samsung didn't announce specific prices, however.

The price-cutting move comes amid falling profits and a declining share of the smartphone market for Samsung. Profits fell 8 percent last quarter, including a 38 percent decline in mobile income. The company's worldwide quarterly smartphone shipments fell 2.3 percent year over year, according to research firm IDC.

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While Samsung is still a strong player in the smartphone market worldwide—with a 21 percent share in the second quarter of 2015—sales have disappointed.

The Samsung Galaxy S6 Edge smartphone at the Mobile World Congress in Barcelona, March 2, 2015.
Gustau Nacarino | Reuters
The Samsung Galaxy S6 Edge smartphone at the Mobile World Congress in Barcelona, March 2, 2015.

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"Samsung remained the leader in the worldwide smartphone market but was the only company among the top five to see its shipment volume decline year over year," IDC noted in its latest Worldwide Quarterly Mobile Phone Tracker.

The Associated Press contributed to this report.