Samsung is losing ground. It’s reporting their first quarter year-to-year drop in almost three years, thanks to intensifying competition. Investors are selling off their stock. What to do?
Build, promote, and sell new smartphones. Samsung is planning the launch of not one, but two new phones in the next six months. One model is expected to have a large screen, while the other model is said to have “new materials”, whatever that means. Could it mean bendable screens? Ironically, Apple is expected to launch a new iPhone similar in size soon. The other model will be lower brow, but still have cool models and features. Their goal is to produce high class phones but sell them at a reasonable price. Hopefully, people will buy lots of these and Samsung will make a good profit.
But is selling two new brand of phones within a few months a good idea? It sounds like Samsung is struggling with the products it has already. During this borderline disastrous quarter, Samsung shipped 74.3 million phones. That sounds great, but they were expecting to ship 90 million. The launch of Galaxy S5 didn’t help matters much. Now it’s banking on two new phones the public knows little about to bail them out. I think they should take some time to find out what went wrong this quarter. Yes, competition is intensifying, especially in Asia, but that’s just one factor. What if these two phones are complete flops and Samsung digs themselves into an even deeper hole? Is this double launch a good idea or is it bound to backfire?