Galaxy Note4 can't save Samsung from decline

Samsung Electronics is expected to launch the Galaxy Note 4 soon, hoping to reverse its woes in the high-end smartphone market, but its problems are deepening as local rivals erode its market share in cheaper devices in countries such as China and India.

Samsung sent out invitations on Wednesday, announcing that it will hold its "Unpacked 2014 Episode 2" event in Berlin, Beijing, and New York on September 3. The company usually launches the new generation of Galaxy Note phones at the IFA electronics show in Berlin, and this year seems to be no exception, as they noted "note the date" on the invitation.

The news comes on the heels of a disastrous second quarter for Samsung, which may still be the largest smartphone maker, but saw its market share fall from 32.6% to 25.2%, while overall smartphone shipments shrank by 1.5 million units to 74.5 million, according to Strategy Analytics, a market research firm.

The Note series of mobile phones has become an important asset for Samsung, but to truly reverse the downward trend, more products are needed.

Urgent need for new product stimulation

Samsung seems to be in a state of stagnation, and any new devices released at this stage are only to stabilize the situation rather than restore growth. Strategy Analytics analyst Neil Mawston believes that in order to revive mobile device sales, Samsung needs a revolutionary device to shock the entire market, such as a foldable or bendable screen.

Galaxy Note 4 may be more revolutionary than the current Galaxy Note 3. It is reported that the product will be equipped with a 5.7-inch display with a resolution of up to 2560×1440 and use Qualcomm Snapdragon 805 processor.

Neil Shah, research director at Counterpoint Technology Market Research, said that even if the Galaxy Note 4 is just a simple upgrade to an existing product, Samsung must first prove to the outside world that it has learned from the failure of the Galaxy S5.

The Galaxy S5 disappointed many people, mainly because it didn't have the luxurious design of the HTC One M8 to distinguish it from previous models or cheap smartphones.

"I hope the Note4 will have all the elements that the S5 lacks. For example, a first-class design with a new design concept, including some metal instead of the plastic shell like the current products. If you look at the Note2 and 3 from the front, and the Galaxy S4 and S5, you will find that they are almost exactly the same," Shah said.

With Apple expected to unveil a new generation of iPhones with larger screens just days after Samsung's Unpacked event , Samsung will have to do something extraordinary to prevent its market share from slipping further.

To turn things around, Samsung must also attract consumers in countries such as China and India with a wider range of low-cost smartphones. As growth in the West stagnates, emerging markets have become new engines of growth.

For example, according to Strategy Analytics, India added 28 million new mobile users in the first quarter of this year, ranking first in the world.

Samsung's smartphone sales have been eroded by local manufacturers in both China and India. "In the past four or five years, it has become a trend for consumers to buy local brands of smartphones. Now there is a snowball effect," said Mawston.

In China, Xiaomi's smartphone shipments in the second quarter have surpassed Samsung. In India, Micromax's overall mobile phone shipments have surpassed Samsung, and its smartphone shipments are also gradually catching up.

Too many product varieties

Samsung has confused consumers with its wide range of phone models, while its low-end smartphones are expensive, "almost 30% to 40% higher than similarly configured smartphones from Chinese and Indian brands," Shah said.

There are a number of factors that have helped companies like Xiaomi and Micromax make great strides. One is the proliferation of so-called reference platforms or reference designs. Even Google has launched Android One, which helps companies build high-quality smartphones for less than $100. Maicromax and other Indian smartphone makers, including Karbonn Mobile and Spice, will launch their first products using the platform this fall.

These reference platforms lower the barrier to entry for smartphone development by providing companies with components and resources that can be quickly and cheaply integrated into devices, so that even companies without the massive R&D departments of Apple or Samsung can still launch competitive products.

Shah said Samsung has made some major changes to better compete in the space, such as consolidating its product portfolio and speeding up its product refresh cycle, while Mawston added that the company has also lowered prices while offering more high-end features in its lower-priced models.

Whatever happens next, consumers will be the big winners as competition intensifies, as they will get higher-end smartphones at better prices.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.