Big companies, big pressures. No big secret that Samsung is in a bit of a place of bother these past few quarters, as sales of its products dropped, eating into the company’s profits.
Several reasons for this — the prime being the Korean giant’s failure to innovate.
Another is the fierce competition in the Chinese market, where Samsung’s share is being steadily eaten up by local vendors like Huawei, Meizu, Xiaomi and ZTE. But that’s for midrange products. Surprisingly, the company is also suffering from low sales of its Galaxy S5 flagship.
It did not take long for people to note that the Galaxy S5 would not sell as well as its predecessor, not long at all after the company confirmed the look, specifications and price tags of the handset.
And now we have some numbers to go by that verify this fact.
As reported by the Wall Street Journal, Samsung sold only 12 million Galaxy S5 units from April to July, which came in at 40% lower than the previous model in the series, the Galaxy S4.
But that’s not even the notable bit.
Apparently, the company ordered 20% more Galaxy S5 units to prepare for the launch, as it was expected to move this volume within the first three months. These expectations were based on a survey of its career partners across the globe, and obviously well off the mark.
With morale down, Samsung is now gearing up to launch its next flagship in the Galaxy S series.
But there are signs that a shakeup in management is on the cards for the company, by the time the upcoming Galaxy S6 goes official next year. Samsung’s mobile division might be led by someone other than J.K. Shin, according to sources familiar with the company’s reorganization plan.
Interesting times ahead.