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What Damage Does Samsung Take To Postpone Selling Phones For Nearly $ 2,000?

Samsung seems to be in a hurry to bring Galaxy Fold to consumers, making the phone a problem …

The decision of South Korean electronics firm Samsung to postpone retailing of a folding phone for nearly $ 2,000 may affect its reputation, but only in the short term, and the company is fully capable of solving problems – the company CNBC news quoted analysts as saying.

Samsung should have officially sold Galaxy Fold retailer since April 26th. However, after some reviewers had problems trying this phone, Samsung announced on April 22 that the phone “needed some improvements” before being brought to consumer hands. In a statement, Samsung said the Galaxy Fold’s new shelf date will be announced “after a few more weeks”.

However, this information does not have much impact on Samsung stock prices. Its share price fell more than 0.3% in Tuesday’s trading session, while the Korean stock market’s Kospi index almost went flat.

If the delay is too long, it will be a concern for investors holding Samsung shares – according to Daniel Yoo, head of global strategy and research at Kiwoom Securities. 

Mr. Yoo said that Samsung’s Galaxy S10 is considered a device that brings satisfaction to users, but Galaxy Fold is the phone that decides whether the world’s largest smartphone maker can play a role. Early on sales and continues to play an important role in technological advancements in the smartphone industry.

“I expect Samsung will solve all problems before announcing the Galaxy Fold’s new date. And this time is most likely to be at the end of the second quarter of 2019,” Yoo said.

Bob O’Donnell, founder and chief analyst of Technalysis Research, said delays in Galaxy Fold retail sales would adversely affect Samsung’s brand.

“Certainly it will hurt the brand, but I don’t think the impact will be high. The problem is not as serious as the Galaxy Note 7 battery problem,” said O’Donnell.

In 2016, Samsung encountered one of the worst technology incidents of recent years, after some Note 7 had battery problems and suddenly caught fire.

Some product reviewers said that the Galaxy Fold test they experienced had problems in the hinge section. Others said the device stopped working after they accidentally removed the protective patch on the screen. The device that the CNBC reporter tried to flicker then stopped working completely after two days of use, although the patch was not removed.

According to Mr. O’Donnell, Samsung seems to be in a hurry to bring Galaxy Fold to consumers.

“I’m not sure why they have to hurry. Huawei also announced a folded phone, but it will take a while to sell,” he said. “I thought that with the importance of this device, in the long term, Samsung had to make sure about everything. But that didn’t happen.”

At the Mobile World Congress (MWC) in Barcelona earlier this year, Huawei unveiled a phone that folds Mate X and announced that by mid-2019 it will officially retail. The price of the Mate X is more expensive than the Galaxy Fold, about $ 2,600.

The folding screen technology has been researched by smartphone companies for quite a long time, Mr. O’Donnell said. In addition to introducing the model, the former challenge was to mass produce folding screens – something that Samsung could be the first company to do. According to the expert, even if Samsung delayed Galaxy Fold retailing, the situation is still “manageable”.

“Remember that Samsung has been studying this screen technology for many years. This is not something they have just started on. It’s just about having to pack everything up carefully, they just have to deal Just a few minor problems, “Mr. O’Donnell said.

The global smartphone industry is facing a decline in sales due to many factors, including users extending the life of each device. In March, an IDC report predicts 2019 will be the third consecutive year of global smartphone sales to decline, with a 0.8% decline compared to last year.

According to analysts, folding screen phones can create a necessary boost for the smartphone industry to reverse sales decline.

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