Samsung Earnings Report: New Marketing Plan Eyed As Earnings Decline

Things seem to have taken a bad turn for Korean tech giant Samsung as it is now planning to change its strategies following a poor earnings report in the past quarter.

The company earned only $3.8 billion from July to September of 2014, which is significantly lower than last year's $9.8 billion.

Samsung's profits are at their lowest for the past three years, with operating income down by 60 percent and sales income down by 20 percent.

Samsung officials believe that earnings will continue to decline if the company does not create a new marketing plan.

Head of investor relations Robert Yi admitted that they were slow to react to market conditions, and that their responses were "not quick enough."

The company said it will now focus on producing devices with varying price levels instead of developing only high-end gadgets. In a conference call, Samsung Senior Vice President Kim Hyun-joon said, "The mid-to-low end market is growing rapidly, and we plan to respond actively in order to capitalize on that growth."

Samsung has lost to its local rivals in India, China and other emerging markets. Some analysts say that rather than seeking stability, the company should once again distinguish its phones to separate it from others, just as it did when it was only introducing "plus size" phones in the market.

The "revamping" may mean that Samsung will manufacture fewer devices in the coming year.

Despite the bad news, it looks like Samsung is ready to conquer the market once again and reclaim its title of being the top brand in the world of smartphones. Samsung recently announced the release of two new devices—the Galaxy A3 and A5—which will be the thinnest Samsung phones to date.