# We Predicted This Challenge for Years: Samsung’s Difficulty in Innovating
In an unusual and frank acknowledgment, Samsung Electronics’ DS Division Vice Chairman, Jeon Young-hyun, recently offered a public apology regarding the company’s inability to innovate. This statement arrives during a period when the South Korean tech giant is grappling with declining smartphone sales, stalled product development, and escalating competition from rivals. The apology, highlighted in a press release, admitted that Samsung is facing a “crisis” and promised to implement significant reforms to reclaim its competitive position.
## Key Information
– **Vice Chairman’s Apology**: Jeon Young-hyun offered a rare apology for Samsung’s lack of innovation, recognizing the company’s ongoing challenges.
– **Falling Sales**: Samsung’s newest devices, the Galaxy Z Fold 6 and Galaxy Z Flip 6, have not performed well in the market, contributing to the company’s decreasing market share.
– **Loss of Market Share**: As per International Data Corporation (IDC), Samsung has been losing smartphone market share to rivals like Xiaomi and Vivo, with its overall sales figures also declining.
## Recognizing the Crisis
It’s uncommon for a technology giant such as Samsung to concede its weaknesses, but the company’s leadership has been compelled to acknowledge the reality of its circumstances. In the press release, Young-hyun remarked, “The performance that fell short of market expectations has raised concerns about the fundamental technological competitiveness and the future of the company.” He emphasized that the responsibility for this predicament rests firmly with Samsung’s leadership.
This concession follows a series of unsatisfactory financial outcomes and product launches. Samsung’s earnings began to decline in 2023, and the introduction of the **Galaxy S24 series** did not rectify the situation. The company has been ceding market share to rivals, especially in critical regions like China and India, where brands like Xiaomi and Vivo are making significant headway.
## A Record of Slow Progress
Samsung’s difficulties are not a recent development. For an extended period, the company has faced criticism for launching products that present only minor enhancements compared to their predecessors. The **Galaxy Z Fold 6**, for instance, has faced significant backlash for its lack of innovation, especially regarding its camera system, which mirrors that of the substantially less expensive **Galaxy S24**. Despite being marketed as a high-end device, the Galaxy Z Fold 6 has not captured consumer enthusiasm, with reports suggesting it sold fewer units in its initial two weeks than its predecessor, the **Galaxy Z Fold 5**.
The **Galaxy S24** itself has also faced scrutiny for its absence of substantial upgrades. The device continues to utilize the same camera system as the **Galaxy S22**, launched three years ago. This situation is particularly alarming considering that competitors like Apple and Google have made notable advancements in photographic technology. Many reviewers have observed that the **Google Pixel 9 Pro** feels considerably more innovative and appealing compared to Samsung’s latest products.
## The Competition is Advancing
Samsung’s stagnation has created opportunities for its competitors to thrive. As reported by IDC, the global smartphone market share for Samsung fell from 20% in Q2 2023 to 18.4% in Q2 2024. In contrast, Xiaomi and Vivo have been growing their market share, especially in regions where Samsung previously held a strong lead.
Xiaomi and Vivo have been at the forefront of smartphone technology advancements, particularly in areas such as battery longevity, rapid charging, and camera enhancements. These brands are competing not only on price but also by providing features that Samsung has been sluggish to implement. For instance, Xiaomi’s latest flagship models boast 200W fast charging, whereas Samsung’s devices remain limited to 45W.
## Internal Strife
Samsung’s challenges have not gone unnoticed within the organization. In April 2024, the company instituted a six-day workweek for its executives to foster a “sense of crisis” among its leadership team. This decision faced widespread criticism, with many questioning the necessity for such extreme measures.
Reports of internal discord have also emerged within Samsung’s design team. Following the launch of new Galaxy wearables, which were deemed overly reminiscent of Apple’s designs, it was revealed that Lee Jae-yong, chairman of Samsung MX Division, was “angry” with the team’s lack of creativity. This raises concerns about the company’s internal protocols and whether its leadership remains in command of product development.
## Samsung’s Path Ahead
In his apology, Young-hyun asserted that Samsung would “restore the fundamental competitiveness of technology” and that the firm would concentrate on long-term solutions rather than quick fixes. “Technology and quality are our lifeblood,” he stated, emphasizing that Samsung would never compromise on these foundational values.
However, whether Samsung can successfully navigate this crisis remains uncertain. The company is anticipated to unveil the **Galaxy S25 series** next year.
