For almost four years, Samsung was ruling the roost with its range of Galaxy smartphones where the company made millions; however, now it seems the company's glamour days are nearing an end as the company has been forced to accept smaller margins and slash rates of their mobile phones.

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According to Financial Express, Samsung Electronics Co. Ltd. seems to be giving into the market pressure. Of late, the company that remained the leader of the smartphone segment is suddenly accepting lower profit margins, thanks to the increasingly competitive scenario.

What's worst is that analysts predict that this situation is far from improving as other companies like China's Huawei Technologies has also made a strong foray into the domain of budget friendly smartphones. Even Xiaomi, another Chinese firm seems to doing really well in this category, indicating that the competition for Samsung is set to toughen in the coming years.

The report goes on to analyze that one of the major reasons for Samsung's failure is that the smartphone maker preferred to stick to its original Android operating system that even its competitors are offering, though in relatively lesser priced phones.

While the mobile division's margin stood at 15.5 percent last year, this year, the figures have dropped to a dismal 10.6 percent forcing the smartphone maker to push the panic button and probably rethink its strategy. On its part, Samsung said that it would continue working on its strategy to optimise profit by introducing premium as well as not-so-expensive smartphones. However, analysts say that Samsung will still find it difficult to overtake apple in the market. Another report on Business Today also confirmed that Samsung will be reworking the prices of its flagship S6 phones in order to cater to the dynamic demands of the market.

On the other hand, the mobile phone markets are only expected to grow stronger and better in the coming years. If Samsung continues to stand the test of time,it is most likely to reap rich benefits later in the years. In fact, the smartphone segment is likely to face a similar fate as the semiconductor industry.

TagsSamsung S6 price, Samsung S6, Samsung makes loss