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Samsung rewrites S7 launch details

(Agencies) Updated: 2016-04-07 07:50

Samsung rewrites S7 launch details

A model poses for photographs with Samsung's new smartphone Galaxy S7 during its launching ceremony in Seoul, South Korea, March 10, 2016. [Photo/Agencies]

Samsung Electronics Co is deploying a new strategy that's being credited for making the Galaxy S7 smartphone a surprise hit since its debut in March: Releasing it sooner and pricing it cheaper.

Sales of the company's top-end lineup are estimated to reach 9 million units during their first month on the market-or triple those of the S6 models in the same time frame last year. That's prompting analysts to raise their projections for operating profit and revenue when Samsung reports preliminary first-quarter earnings on Thursday, even as its marquee device with a wraparound screen is as much 8 percent cheaper than last year's device.

The world's biggest smartphone maker scrapped its practice of raising prices with each new model, a ploy long used by Apple Inc, as it tries to counter flattening sales growth. While Samsung's chip and display businesses probably will suffer as a result, sales of the S7 devices are being energized by critical praise, a lull in new models from Chinese makers and the lack of an iPhone 7 to sway upgraders and first-time buyers.

"With the high-end smartphone market largely stagnated, the issue is no longer about what 'Wow' features the new phone has," said Claire Kim, a Seoul-based analyst at Daishin Securities Co. "Rather, it's about who can bring out the phone quicker."

The S7 lineup was released March 11, about a month sooner than the S6 models that went on sale in April 2015. The phones look similar, one with a 5.1-inch screen and the other with a 5.5-inch screen wrapping around the edges, yet the new models include a memory-card slot, waterproofing and a longer estimated battery life.

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