Samsung’s recent poor product reviews, political and business instability, and various other factors have made us question if is Samsung Dying in 2023?
Samsung, despite being one of the most well-known and powerful tech giants, is facing huge difficulties. Even after being a century-old brand, it is facing an existential crisis on many fronts. It is best known for its consumer electronics products. It’s one of the most critical products Samsung S23 Ultra was poorly received.
Besides, the massive layoffs going on globally, Samsung also shut down its Samsung Galaxy Note Series to focus only on 1 flagship. Furthermore, Samsung’s foldable smartphones still haven’t been able to achieve mass market adoption.
Is Samsung Dying?
Yes, like all companies, someday or the other, Samsung will dissolve. However, the worrying part is that the directionless Samsung is quickly steering toward its death by making many wrong/unfavorable decisions.
To understand what’s wrong with Samsung, here are some of the main things that would decide the fate of Samsung:
- Poorly executed updated to the latest phones
- Little to no success in gaining market share of its apps
- No Services business
- Trying to copy Apple too much
- Lack of growth in other businesses
Let’s discuss all of it one by one.
What Happened to Samsung?
Samsung provides a lot of products and services, but smartphone still remains one of their most critical services. However, in recent times, Samsung has been rapidly losing its stronghold on the market.
While it may not be directly reflected in Samsung’s sales, some serious concerns must be addressed.
First of all, the Samsung Galaxy Fold/Flip, even after multiple generations, remains a niche product and is nowhere near the sales of their other products. With growing competition, they haven’t been able to bring down the price to a mass-market adoption level.
Next up, the Samsung Galaxy S23 Ultra shared the same design as its predecessor, saw some rather surprising downgrades, and was received poorly by reviewers. Sure, it had some serious new tech, including the fastest storage on smartphones, but the changes don’t seem worth a generational change. This is one of the biggest reasons why Samsung is Dying.
To understand how Samsung is dying, we must look at its weakening position in the lower and middle-end market. Earlier, their mid-range competition was only OnePlus, but with the downfall of OnePlus, we also saw newer competition, including Essential, Google Pixel, and more, that are proliferating.
These are some of the reasons why Samsung is Dying.
Samsung’s phones have had their version of many Google apps for years. Samsung phones always had 2 versions of many apps like Mail, App Store, and more in Samsung’s attempt to promote these apps.
Essentially, Samsung is trying to create a long-term user base for its apps. However, even after many years, their apps remain rarely used by Samsung’s own customers.
They have never been able to offer better app features than Google. The same goes for Samsung TVs and various other products where they might make the best hardware, but the relatively weak software position makes things not ideal for customer retention.
They are rarely able to retain customers based on software, and with growing competition, all hardware gets outdated in mere months. This is one of the major reasons why customers question is Samsung Dying?
No Service Business
All major tech companies have some services businesses. Even companies like Apple, which was traditionally a hardware/software business, have built services like Apple TV+ and more to provide their business more stability. Unfortunately, that is not the case with Samsung.
Samsung’s service business is negligible, and we expect no growth soon. Of course, when I say this, I mean consumer services rather than commercial services.
Services businesses always provide a consistent regular income, in case of major financial issues, the services are more likely to maintain the cash flow.
Samsung’s lack of good services is one of the major concerns in What’s Wrong with Samsung.
Trying to Copy Apple too Much
While Samsung is an innovative company, they are never free from the influence of Apple on its business.
In technology, it is never wrong to copy a good idea, even if that idea comes from your competition. However, it’s not right to copy the mistakes of your competition.
Samsung is losing its unique identity and independent thought with wrong decisions like removing chargers from phones, the headphone jack, and more.
These decisions are making public opinion a lot against Samsung. If they have their rationale behind the decisions, then well and good. But, most of the time, Samsung is just moving with the wrong moves of Apple.
Lack of Growth in Other Businesses
, Unlike the core technology businesses, other businesses often remain static with little to no changes in the market.
The TV industry, for example, has been dominated by LG and Samsung for a long time, and no significant innovation/changes are coming in it. ACs, Refrigerators, microwaves, and more remain mostly the same.
As a result, Samsung is not the innovative juggernaut it once was.
Even with so many bad moves by Samsung in recent times, some silver linings still compensate for what’s wrong with Samsung.
With their smartphones, they now provide regular, on-time software updates for up to 4 years that boost their device’s resale value and usability.
Furthermore, they are involved in various other industries like Displays, Insurance, finance, medical, food, etc. these industries with sustainable businesses can keep them afloat for a long time. Though, it must be noted that these businesses are mostly concentrated in South Korea.
Samsung is also a B2B service provider for various major clients. It is one of the finest display manufacturers to this day. Apart from TSMC, it is the only major tech giant involved in semiconductor-related businesses.
Hopefully, Samsung would correct its mistakes and better capitalize on its existing success so that you never need to ask, “Is Samsung Dying” again.
Is Samsung Dying? Yes, Samsung is dying due to poor strategy in smartphones, a complete failure in consumer services, a lack of innovation, and copying from companies like Apple.
Though, with proper planning and strategies, it can again become the high-flying tech giant it once was.
So, what’s wrong with Samsung? Samsung’s bad product execution for smartphones/tabs and inability to pivot into the services sector are some of the major things wrong with Samsung.
When will Samsung die? Samsung is slowly dying, but with the massive cash reserves, their death is still a few years away. If they properly make changes, they could survive many more years.