Has Samsung fallen victim to its own product marketing strategy?
Once the leading manufacturer of smart mobile devices (based on volume of units sold), Samsung looks to have fallen on some tough times. But is the stall in its revenue momentum the result of its own product marketing strategy? In this writer’s opinion the answer is yes.
Lots of analysts follow Samsung. The trend in market commentary about this manufacturer is to 1) remark on deceleration in global sales of Galaxy smart phones, and tablets, and 2) to posit notions as to how Samsung is attempting to remedy the slower sales growth based upon public announcements of changes. The latest example of 2) is an article written by Ming-Jeong Lee, which appeared in the online Wall Street Journal on September 24, 2014. The title of this piece is Samsung Drains Software Power from Mobile. Lee interprets Samsung’s decision “to move a number of software engineers out of its mobile unit to other parts of the company” as an indicator its decision to retreat, to some extent, from the competition for smart mobile devices, presumably based on the above mentioned decelerating revenue condition.
But readers may want to consider some other points about Samsung’s decision to move software personnel elsewhere. We maintain a Samsung Galaxy Note 2.1, 10.1. We find the software to be very much below our standard for suitable usability. There are many annoying features of the software, too many, in fact, to mention here. So from our perspective, this decision may actually be good news, and a pointer to Samsung finally deciding to make some long overdue personnel changes in a team responsible for a large segment of how consumers actually engage with Samsung tablets and smart phones.
This writer points to other reasons for Samsung’s current slower pace of revenue growth for these products. The comparatively clumsy user interface (which is also cluttered with overlapping features) pales as a point of weakness when compared to Samsung’s hyper pace of introducing new product, and, thereby, rendering products already consumed obsolete. Again we point back to our own purchase and must note strong dissatisfaction with the paltry resale value of our tablet, should we decide to sell it, and the lack of new software enhancements to the user interface, etc.
We don’t think it’s credible to assume mid market consumers of smart mobile devices will just continue to purchase new models, year after year. Granted, Samsung is not the only advocate this tacit product marketing assumption to cannibalize a current customer base for new product sales. Android certainly has a seat at this table as, this writer would argue, does Apple. Nevertheless, Samsung may have a highly valuable opportunity to recharge revenue growth should they 1) clean up the clunky and ineffective user interface (perhaps when they launch Tizen, which should be a free-of-charge upgrade for any/all existing Samsung customers) and, 2) come to market (after serious premarketing) with a set of new features consumers truly find useful.
Ira Michael Blonder
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