Samsung is feeling the heat at both ends. The company’s high-end devices are facing stiff competition from Apple while Chinese rivals have started dominating the low-end market. Earlier this week, the Korean company’s Vice Chairman admitted that Samsung’s smartphone business was entering “a slow growth phase” as competitors introduce new technology and business models. Kwon said at Samsung’s anniversary ceremony that the Korean company won’t survive if it resisted change.

Galaxy S7 Will Be Cheaper In Price Than Galaxy S6

A lower price could significantly boost the Galaxy S7 sales

While Kwon didn’t specifically mention it, Samsung may adopt new launch prices with the Galaxy S7. Analyst Pan Jiutang said on Chinese microblogging site Weibo that the Galaxy S7’s retail price will be 10% lower than that of its predecessor. Even if it’s just rumor, Samsung made a similar move with the Galaxy S6 and S6 Edge prices earlier this year, which helped the company sell more units of its flagship device.

Pan Jiutang says a lower price tag would allow Samsung to compete better against rivals such as Apple and Chinese vendors. During the last quarter, Samsung sold 84 million smartphones, up 6.3% from a year ago. However, the increase was mainly due to the company selling more affordable handsets than flagship devices. The numbers explain why dropping the Galaxy S7 price makes sense.

Galaxy S7 to arrive in January with impressive specs

The Galaxy S7 is rumored to be unveiled in January, earlier than the usual refresh cycle of March. Korean publication Daum.net recently said the device will go for sale in February. An early release could help Samsung compete better with Apple’s iPhone 6S and 6S Plus. Samsung is expecting a slow year ahead as rivals introduce viable alternatives at relatively cheaper prices.

The Galaxy S7 is expected to be available in two variants, one powered by Qualcomm Snapdragon 820 and another running Samsung’s in-house Exynos 8890 processor. The device will come with Samsung Pay support and ClearForce technology that would be similar to Apple’s 3D Touch. Latest reports suggest that Samsung is also in talks with Sony to get the IMX300 camera sensor for the Galaxy S7. IMX300 is the same sensor that Sony uses in its flagship Xperia Z5.