Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) is not happy with how successful the iPhone 5 is, and how poorly sales of the Samsung Galaxy S4 are doing in comparison. The company has come up with a solution to the problem, but, as is often the case with Samsung, the medicine is worse than the cure. Samsung is pulling forward the release of the Galaxy S5.
Apple Inc. (NASDAQ:AAPL) was rumored to be readying a smart watch for release some time in 2013. The company has not released one, and it doesn’t look like it will. The story spooked executives at Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930), however, and they rushed the Samsung Galaxy Gear. The Samsung Galaxy S5 may end up with the same problems.
Samsung Galaxy S5 rumors
There’s a lot to like about Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930). The company releases great mobile phones, and it makes great components. It isn’t perfect, however. It has a tendency to include a half finished, half thought out features in its phones. If the Samsung Galaxy S5 release has been pulled forward, it may cause problems related to those features.
A Korean report, which was picked up by the International Business Times, says that Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) may not be able to include optical image stabilization in the Samsung Galaxy S5 because of component issues. The technology is included in the Samsung Galaxy S4, and it would be a mistake to leave it out of the Samsung Galaxy S5.
Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) may be forced to make that choice, however. If the company does bull ahead and release the Samsung Galaxy S5 earlier in order to rid itself of problems from declining Galaxy S4 sales, it could be the beginning of the end for Samsung. The company is not the only one offering excellent Android products any more.
Samsung competition
Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) cannot afford to release a bad Samsung Galaxy S5. the problems will not be customers switching to Apple Inc. (NASDAQ:AAPL). It will be customers flocking to HTC, and LG. the Android ecosystem has changed, and Samsung isn’t the only company offering a flagship anymore.
If the Samsung Galaxy S5 has negative publicity surrounding its launch, it will be easy for customers to switch to another Android smart phone. They are not leaving the ecosystem, they’re just changing manufacturer. that leaves Samsung with a big problem heading up to the S5 release date. The launch could be make or break for the company’s smart phone division.
Samsung is now facing a sort of existential crisis. The company needs to launch the Samsung Galaxy S5 soon, or be faced with declining profits. If it seeks to do that, however, it might end up releasing a bad product, which could kill the Galaxy brand. The Samsung Galaxy S5 will be an interesting release, but it may not be a pleasant one.
