What you need to know
- Jeong Yong-hyun, vice chairman of Samsung Electronics’ DS division, issued an unusual apology for the company’s lack of innovation.
- The release comes after Samsung’s latest phones, the Galaxy Z Fold 6 and Galaxy Z Flip 6, are said to be selling poorly.
- Additionally, a recent report from the International Data Corporation found that Samsung is losing market share in smartphones while its competitors are gaining share.
It’s rare for the world’s biggest technology companies to admit that they are facing serious problems. Well, that’s exactly what Samsung Electronics DS division vice chairman Jung Yong-hyun said in a press release this week. Yonghyun acknowledged that outsiders considered the company’s current situation a “crisis” and vowed to make changes and improvements that would benefit investors, customers and employees alike.
A press release translated into English reads, “Today, we, the Samsung Electronics management team, would like to first apologize to our customers, investors, and employees who have always loved Samsung Electronics.” are.
“The performance below market expectations has raised concerns about the fundamental technological competitiveness and the company’s future. Many are talking about Samsung’s crisis,” the statement continued. “The responsibility for this all lies with those of us who lead the business.”
The past two years have not been smooth sailing for the South Korean tech giant. First, although post-pandemic numbers were strong, financial results and revenues began to decline in 2023. The release of the Samsung Galaxy S24 series doesn’t seem to significantly improve the situation, with Samsung losing market share to competitors throughout 2024.
The turmoil also attracted attention in ways that weren’t good for Samsung. In April 2024, Samsung introduced a six-day work week for executives in order to create a sense of crisis among management.
Samsung MX division chairman Lee Jae-yong was reported to be “angry” with the team’s design following criticism of the new Galaxy wearable products, which many deemed to be knock-offs of Apple’s designs. Of course, given this, I was left wondering why Samsung’s chairman is only looking into product design. rear they released.
That brings us to the present, where Yonghyun is publicly apologizing for the company’s lack of innovation.
“Samsung has a history of taking on challenges, innovating, and overcoming challenges that have always turned crises into opportunities. We will definitely turn the serious situation we are currently facing into an opportunity to leap forward,” the statement said.
“Above all, we will restore our fundamental competitiveness in technology. Technology and quality are our lifeblood,” Yonghyun wrote. “This is something Samsung Electronics is proud of and cannot compromise on. We will ensure fundamental competitiveness, not short-term solutions.”
Despite Samsung’s efforts to rectify the situation in April 2024, the so-called “crisis” seems to be getting worse before it gets better. According to X (formerly Twitter) leaker Ice Universe, which has a proven track record, the newly released Samsung Galaxy Z Fold 6 sold less than 300,000 units in its first two weeks. According to the report, this is a lower number than the Galaxy Z Fold 5 sold last year, and it appears that Samsung’s regression continues.
Samsung Galaxy Z Fold6 is worse than Fold5… AI alone doesn’t seem to be able to save Samsung Worldwide, it sold only 270,000 units in the first two weeks.August 28, 2024
Official estimates from the International Data Corporation (IDC) confirm that Samsung has lost smartphone market share as of Q2 2024 compared to the same quarter in 2023. IDC reported that Samsung moved more than 53 million smartphones in the second quarter, but its market share was 18.4% — down from 20% in the same period last year. Meanwhile, competitors Xiaomi and Vivo increased their market share year-on-year.
Indeed, Samsung shipped more phones in Q2 2024 than anywhere else. But it’s no coincidence that Xiaomi and Vivo, which are pushing the boundaries of smartphone technology outside of North America, are not innovating as much as they should, by Samsung’s own admission, giving Samsung an advantage. Maybe.
All the ways Samsung stagnated with recent releases
As someone who has closely followed Samsung’s product announcements and financial results over the past few years, the lackluster sales aren’t really surprising to me. While the company is releasing new devices, it’s not pushing the boundaries in the highly competitive smartphone market.
The standard Galaxy S24 has the same camera system as the Galaxy S22. There’s no reason you need to go through three generations between camera upgrades. This is especially true as Apple and Google continue to improve the camera systems of their flagship models. Overall, the best feature of the Galaxy S24 is probably Galaxy AI, which eventually made its way into the Galaxy S23 series.
The worst is the Galaxy Z Fold 6, which shares the same rear main camera as the base Galaxy S24. That’s despite the fact that the Galaxy Z Fold 6 costs more than $1,000 more than the Galaxy S24, and despite the fact that it actually has the same camera sensor as the nearly three-year-old Galaxy S22. is. I’ve been using the Galaxy Z Fold 6 and the Google Pixel 9 Pro for weeks, but I found Google’s foldable devices to be more innovative and exciting. There’s no doubt about that.
As a reporter and critic who has closely followed the company’s gradual updates for years and watched brands like Pixel, OnePlus, Oppo, Vivo, Xiaomi, and Honor eclipse Samsung in terms of innovation, Samsung’s apology is difficult to accept. That said, it takes courage to admit this problem, especially for a company as big as Samsung. We hope that the situation will improve starting with the Galaxy S25 series coming next year.
