Anonymous Samsung employee says the Galaxy S4 has caused a “crisis” at the company

According to the Korean news outlet ETNews, a member of Samsung’s staff who wasn’t named says that the Galaxy S4 has made the company experience a “crisis”.

Samsung has now realized that smartphone penetration in Western markets is nearing saturation. Unfortunately, their plan to correct the mess they’re in is to “maximize the market share with a number of small hit models, not one single mega hit model.” In other words, they’re going to be less like Apple, who releases one star device a year, and more like Samsung, meaning they’ll release a steady flow of devices that offer little to no differentiation.

No further details were provided, other than a repeat of yesterday’s news that there are going to be four Galaxy Note III variants, each of which are tailored to specific market segments.

So … is Samsung screwed? No. They’ll never be because they make the components that everyone uses to make their own smartphones, tablets, and computers. That being said, they’re at a critical time in their lives where they need to realize that they’re not kids anymore. They can’t get away with doing the bare minimum. They need to step up their game. And that almost always means a hit on profits, but it’s needed now more than ever.

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  • So what exactly is the crisis here?

    • Stefan Constantinescu

      Haven’t you heard the news? Sales aren’t anywhere near what Samsung was expecting.

      • 20 million Galaxy S 4 in 60 days is a crisis? I thought we already got through that after the 20 mill confirmation? As for the saturation, I don’t think it’s something to worry about, they just need to innovate, Android is still a darling of many, this cannot be a Nokia situation as they had a dying OS then.

        Plus ability to serve all market segments makes it easy for Samsung to take a hit anywhere without much impact.

        You of all people would know that Samsung had numerous prototypes for the Galaxy S 4 and decided to go with the cheap one to mass develop, they still have something up their sleeve, just need to implement.

        • MarcPhilippeB

          The saturation is a big thing to worry about. Over 60% of Samsung profits come frome the mobile space, with the Galaxy S series having obviously the highest margins. If that segment is slowing down (and it will soon) they need a new game changer. As does Apple. But compared to Samsung, Apple has done that a few times now.

    • Marius

      More like an “identity crisis”

  • Marius

    These guys want to be “all over the market”, don’t really care if they are not seen as an exclusive brand, like Apple. Which is not really a bad thing, in my opinion. One Samsung phone for every Earth man, and woman, of course 😀

  • lalala

    im guessing the next playground will be mid-range phones?