Samsung seems to have its worst record of quarterly profit in two years. The performance of company is below its expectations. The higher inventory levels and cheaper rate of Chinese mobiles appear to affect the Samsung smart-phone ground.

A survey from the research firm ‘Counterpoint’ based on 90 percent of the global sales states that the sale of iPhone 5s stood at seven million in May, whereas Samsung’s flagship Galaxy S5, managed a sale of five million devices.

The data suggests that Galaxy S5 is not as good as Galaxy S4 as far as performance is concerned. The survey states that Galaxy S5 fell short of market expectations in terms of its display quality and by using a plastic case.
“Galaxy S5 sales probably remained at about 5 million units in June,” said Tom Kang, Seoul-based analyst for Counterpoint.

“They made one mistake, one product that didn’t hold up to expectations and they are paying the price, they will have to move forward and leave behind what has failed and focus on the next product,” he added.

Though Samsung did not comment on Counterpoint’s data or disclose shipment figures for the Galaxy S5, an executive in April said that the new flagship device was expected to perform better than its predecessor.

“We will strengthen our product competitiveness by reinforcing our premium brand reputation, powerful product line-up, and cutting-edge technology,” the company said in an email statement.

The survey concluded that Samsung S5 could not attract the customers over the cheaper alternative from China’s Xiaomi and Lenovo available in the market. It also states that Xiaomi and Lenovo Group Ltd gained, while Samsung’s market share fell to 18 to 20 percent.

Some analysts suggest that Samsung should reduce prices across the board, while others say Samsung should look at more inventive alter such as introducing flexible displays.