Galaxy S5 Lacks the "WOW" Factor

Posted by Kirhat | Friday, April 18, 2014 | | 0 comments »

Samsung Galaxy S5
Much was expected from the latest version of Samsung's flagship Galaxy smartphone series when it went on sale worldwide. The Galaxy S5 has a lot riding on it to steer the South Korean firm's profit-making machine back on track as growth in smartphone sales slows, with mature markets like North America and Europe near saturation.

After the electronics giant announced that it was facing a second consecutive quarter of profit decline, Galaxy S5 was supposed to prop those numbers up and allow Samsung to float high and in equal footing with their competitor, Apple.

Initial reviews of the S5 were promising, hailing the unit as one of the best high-end smartphones on the market. The problem is that the high praises were accompanied a general consensus that it lacks the "wow" factor to differentiate it from its predecessors and competitors.

"It can swim, but it won't make any waves," was the verdict of the Wall Street Journal, referring to one innovation in the S5's waterproof covering.

Samsung's mobile unit has been the driving force behind the record profits of recent years, and it needs the S5 to perform well as a retort to the doom-mongers who say the company lacks a clear strategy to flourish in an increasingly competitive, saturated market.

Samsung made more than 30 percent of all smartphones sold in the world last year, nearly twice the share of its arch-rival Apple. Despite this accomplished record, the company estimated that its first quarter operating profit will only be US$ 7.96 billion, marking a second straight year-on-year decline.

Will Samsung be able to recover soon? It looks like they may be able to turn everything around if everything just falls into place. The first strategy was to attract existing Galaxy clients by offering the S5 at a much lower price than the previous S4 model.

Research firm IDC estimated the average selling price of smartphones will fall to US$ 265 globally by 2017 from US$ 337 in 2013 and US$ 387 in 2012.

Samsung is believed to have reduced its marketing spending on the S5 to allow more allocation for its legal bills as years-long patent battles against Apple continue.

The two have locked horns in patent suits in several nations involving design and technologies on their smartphones and tablet computers.

A fresh patent trial opened in the United States a few days ago, with Apple vowing to prove that Samsung flagrantly copied iPhone features and should pay more than US$ 2 billion in damages.

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