The electronics giant Samsung is reportedly taking a leaf out of Apple’s strategy book and plans to offer leasing plans for their smartphones to increase the market share of the latest Galaxy series.
Samsung is preparing to introduce a lease plan to the US market in the coming months. The news follows the release of the new Galaxy series: the S6, S6 Edge and the S6 Edge+ Phablet. Samsung has long since had a reputation for launching new products at a rate unmatchable by its competitors and the lease plan strategy is probably a bid to improve on disappointing sales this year.
According to Forbes, Samsung has been in trouble since the beginning of this year. Expense cutting started with reduced marketing budgets and a planned cut down of 50% in general expenses. Earlier this month, Samsung also announced a 10% layoff in staff at headquarters in Korea.
The company’s problems were compounded by delays in the much anticipated Galaxy S6 series due to late shipments. Moreover, the competition with Apple remains as tough as ever, and on the other hand, the relatively cheaper Chinese smartphones slice away at the Android market. The iPhone is practically an iconic symbol in the smartphone market and tough to beat, especially considering the iPhone sales account for more than 50% percent of its revenues, whereas Samsungs IT and Mobile division, phones and tablets together account for just under 50%.