Growing weakness in Samsung Smartphone demand will bleed into Q3
As Samsung reports their quarterly report with a mix of excitement and caution (Samsung Boosts Capital Spending as High-End Phone Demand Slows – Bloomberg), Argus Insights sees their caution warranted for Q3. July brought the first significant drop in consumer buzz for Samsung Smartphone in a long time. What made the drop even more poignant was that Apple saw a boost in demand. This drop in buzz was coupled with a drop in delight meaning that consumers expectations for what a Samsung Smartphone brings to their lives are not being met.
The weakness of the S4 coupled with the desire to phase out the S3, compounded by the confusing launch of four separate Galaxy Note 3 handsets this fall portends a challenging 2013 for Samsung. The market leader has to lead the market in more than just sales and invention of technology driven features, it has to lead with value and innovation to the end user.
