Many are impressed with Samsung's Galaxy S5's features and capabilities. But it turns out that despite its good reviews, the flagship device so far is not selling that well, at least compared to its predecessor, the Galaxy S4.
The Galaxy S5 was released in April earlier this year. The large-screened smartphone supposed to compete directly with Apple's iPhone 6 and iPhone 6 Plus devices. However, as reported by the Wall Street Journal, the Galaxy S5's sales figures through its first three months since release have been lower than expected.
According to WSJ, the smartphone has sold 40 percent fewer than Samsung has anticipated. During the three month period, 12 million Galaxy S5 units were purchased by customers. That is still a high figure, but compared to its predecessor's, it still falls short. In its first three months, the Galaxy S4 managed to sell 16 million units.
For the record, Samsung has not released any official information yet on just how many Galaxy S5 devices have been sold so far. But the South Korean phone maker did disclose that during its latest fiscal quarter, it reported a 74 percent year-over-year drop in profit in its mobile device segment. Now into the last quarter of 2014, Samsung expects another tough three months as the competition gets fiercer during the holiday season.
Furthermore, as suggested by WSJ, the company could be making changes to its organizational structure. Samsung is reportedly eyeing the removal of J.K. Shin, the current chief of the mobile device segment, and replacing him with B.K. Yoon, the current chief executive of the home appliances and television segment.
In more than ways than one, it has been a bit of a frustrating year for Samsung. Which is sort of a shame because the Galaxy S5 is a generally well-liked offering according to industry experts. And many agree that the device is definitely a significant upgrade on the Galaxy S4 -- keeping some of its predecessor's best qualities while adding some new refinements.
But competition has been unforgiving, especially those provided by Chinese phone makers, who often release products that are far cheaper. Just last week, Samsung announced that it will be offering fewer smartphone models next year in a clear effort to minimize production costs and combat slipping profit margins.
But in spite of the Galaxy S5's less than stellar global sales, it actually had decent sales figures in the United States. In fact, the Galaxy S5 sold better in the US compared to the Galaxy S4. However, when you look at other markets, the device could do better, sales-wise. In this quarter and possibly for most of next year, Samsung definitely has its work cut out for it.
