Sales of Samsung’s Galaxy S5 haven’t gone as well as the Korean giant expected…
According to a report in the Wall Street Journal the device sold 12 million units in its first three months, 40 per cent fewer than predicted and almost 4 million fewer than its predecessor, the Galaxy S4, leading Samsung to take a long, hard look at its smartphone business.
The poor outing of the Galaxy S5 has reportedly left Samsung with a surfeit of devices and an ever-expanding marketing budget, as it struggles to move stock.
We recently reported on Samsung’s decision to consolidate its smartphone arm, by releasing fewer devices and concentrating on its premium brand. Decisions which were apparently motivated by the testing financial year the manufacturer has been enduring, a year which will have been greatly exacerbated by the underwhelming performance of its impressive flagship device.
Declining profitability and a harsh financial period have reportedly led the company to consider reshuffling its management team. Recently, new executives were brought in to Samsung’s US arm and the company began combining operations and cutting duplicate positions in a bid to lower costs and breathe new life into ailing fortunes.
Whether the same extensive measures will be necessary back in Korea remain to be seen, but 2014 is unlikely to be going down as a year to remember in Samsung’s book, despite the company’s ongoing dedication to implementing new technology.
A rosier 2015 awaits though, owing to increased interest in wearables and a new and potentially ground-breaking range of flexible Super AMOLED displays, which will likely begin making their way to smartphones, tablets and watches.