First of all, Samsung did not meet analyst sales target at $8.8 billion. Instead, they sold slightly under at just $8.3 billion, costing them a fall in market share of $8.3 million. The competition in this market is fierce and smaller players are weighing in. Companies such as Huawei and ZTE are growing with lower-cost devices. More importantly, Samsung's main competition is the Moto X.
The Google owned Moto X device is scheduled to launch on August 26, 2013, which could potentially get a huge head start on the next generation smartphones. Google already spent half a billion dollars marketing the first smartphone to be assembled in America.
Unlike with Apple devices, Google and Motorola lets the public know well in advance of the nitty-gritty details of the device and this, hopefully, will also pay off.
Samsung, in order to stay in the spotlight, has moved up its schedule to launching the Galaxy S5 line as early as the end of this year. Samsung sales are already slumping and won't be generating another wave of sales with the Galaxy S4 and the Galaxy S4 Mini models. They plan on moving ahead of schedule, but can they get away with it?
Samsung really has no choice. In order to hold a market share and compete with the upcoming Moto X, LG G2, and the iPhone 5S (possibly iPhone 6), they really have run out of options. The LG G2 has already been scheduled for August 7, 2013. The release date for the upcoming iPhone is still unknown.
This will definitely disappoint current Galaxy S4 owners, especially Galaxy S4 Mini owners with the devices launching only half a year and just few months respectively. At the same time, this will also cause a major price drop with the Galaxy S4, possibly making it the perfect opportunity to save some big bucks.
Source: http://www.digitaljournal.com/article/354992
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