Image source: extremetech.com
The earnings report of Samsung for Q1 2015 is not a very profitable one. Even though the company did meet its expectations for the past quarter, those expectations were a lot lower in terms of revenue and profit. So it seems like Samsung struggles to return to its glory days that the South Korean company has seen in the past as this is the fourth quarter in which it saw falling earnings.
There was a serious drop from the $5 billion reported profits in Q1 2014 to the $1.8 billion now. This represents a year on year drop of 64.2 percent. Samsung didn’t discuss its expectations for 2015 on mobile sales. However, the company did say they are going to focus more in newer markets and limit tablets to low and mid-range models.
We’re not very surprised that Samsung isn’t capable of giving guidance. The company has a very unclear strategy and it isn’t very confident in its own flagship products.
It’s very well-known that Samsung’s biggest smartphones are the Galaxy Note series and the Galaxy S. The company launched its newest Galaxy Note, the Galaxy Note 4, last year in September at the IFA in Berlin. Samsung also introduced the Galaxy Note Edge then. This new device offered a bent screen that featured a ‘spine display’ that curved in the main screen. This was truly a design progress and it was a sign that Samsung was thinking about new ways to improve the interface options and form factors. This was also proof that Samsung was capable of thinking outside the box and rely less on just copying from other companies.
But that did not last.
Soon after that, Samsung revealed that the Edge was not going to be a mainstream smartphone and would only be available to a small part of the population; South Korea, to be exact.
So how can we believe that the Galaxy Note 4 is the superior smartphone when we saw with our own eyes that the Edge was more advanced and a better phablet altogether? But Samsung were too frightened to stick with the Edge.
And now the company plans to do the same thing with the S6. We believe that Samsung should commit itself to the better device, and thus the Galaxy S Edge should become the only S6 model available on the market. The digital spine should be made available to everyone. We wonder, when will Samsung announce the limited distribution of the S Edge?
Samsung’s uncertainty is demonstrated by the fact that it has two models in both its phablet model and smartphone one and it uses two operating systems: Android and Tizen. Samsung continuously fails to make a decision about what it believes to be the best choice.
Samsung is still a follower in terms of hardware. The South Korean company was able to make three great devices in the past years (The Note, the Galaxy S and the Tab) but since then did very little to distance itself from the original formula. Anything we’ve seen different on the new devices has already been launched by some other company before them.
The company is relying only on the push from its previous sales and market position to get profit and revenue, instead of pushing forward and finding its own way. This can’t last forever and the numbers are living proof of that.
All in all, has Samsung ever decide about something on its own?
Roxanne Briean
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