Following its April 2014 release, the Samsung Galaxy S5 has sold 12 million units in its first three months on the market, which is 40 percent short of what was expected.

On that note, Samsung Galaxy S4 was able to collect 16 million sales in the same timeframe. The S5 was supposedly a better version of S4 with improved features and design, CNET reported.

In the US, S5 sales have increased, however, in China sales are only at 50 percent compared to S4. This is strange because these countries are two of the most significant mobile markets in the world.

In the last fiscal year, Samsung has declared 74 percent lower sales compared to the previous year. The company has attributed this decrease to the increased competition in the smartphone market. Evidently, phone manufacturers from China are Samsung's biggest rival.

To resolve the problem, the company plans to change its marketing strategy for mobile phones by promoting the already released units and decreasing the number of other models.

There is also possibility of changing the company's management staff to address the issue.

J .K. Shin, current Chief for Mobile Products Samsung, will be replaced by B.K. Yoon, head of Samsung appliances. However, Samsung has not yet confirmed this news.

In order to sell more S5 units, the company needs a bigger marketing fund. Decreasing the price of the remaining devices is essential, but may result in lower profits for the company.

On that note, Samsung is expected to release Galaxy S6 in the following year. According to Forbes, the smartphone manufacturer must create new models rather than follow trends. Upgrading previous units and marketing them proved to be a failure for the company.

Despite the recent challenges, Samsung still attained 24 percent of the global market for smartphones. As it stands, the company is the top smartphone manufacturer in the world.