Friday, March 28, 2014

Samsung unlikely to emulate the success of the Galaxy S4 with the Galaxy S5

Internal production issues as well as a high asking price mean that the Galaxy S5 might not be as successful as the Galaxy S4.



Samsung’s latest flagship, the Galaxy S5, is set to launch next month globally.*From the behest, it is unlikely that Samsung will get off to a strong start with the Galaxy S5; most of it is not even related to external market conditions.

Samsung is said to be running into difficulties with the sensor coating for the 16 MP ISOCELL camera on the Galaxy S5. A low yield of the sensor has made Samsung to reconsider initial production volume of the Galaxy S5 from 7 million units to 4 million units. Even if the manufacturer manages to sell all units of the Galaxy S5, it would not match the 10 million sales figures achieved by the Galaxy S4 last year.

External factors



A carrier ban that is set to go into effect from April 5th*in South Korea prohibits carriers from signing new users for 45 days. Another factor that would affect sales of the Galaxy S5 is its price. Carrier-subsidized versions of the device will likely be offered for around $299, but the unlocked handset will likely be in the vicinity of $800. In countries like India, the Galaxy S5 price is around $860 (Rs. 51,500). In Taiwan, the handset was launched for $781. Throughout the globe, the cost of the handset is varying from $750 to over $1000. Samsung was originally rumoured to be considering offering the Galaxy S5 at a lower price point to the Galaxy S4, and while it succeeding in doing so in a few countries, the device is way too costly for everyday consumers.



Then there is the device itself. The Galaxy S4 was far better than the Galaxy SIII in terms of internal hardware. While there wasn’t much of a design change between the handsets, the Galaxy S4 offered 2 GB RAM from the 1 GB on the Galaxy SIII, a full-HD screen and a quad-core CPU (Snapdragon 600) to the dual-core CPU (Snapdragon S4 Plus) offered in the US version of the Galaxy SIII. The Galaxy S5, on the other hand, is just an iterative update when seen against the Galaxy S4. It features a slightly faster processor and a slightly bigger screen, but otherwise does not offer significant enhancements over the Galaxy S4.

That doesn’t mean that the Galaxy S5 is without its share of innovative features. The 16 MP camera offers 4K shooting modes, the finger scanner can be used as a way to authenticate digital purchases and the heart rate sensor beneath the camera lens checks your pulse. Also, the user interface has gotten a much needed update, most likely due to Google’s intervention.

Market fatigue?



But these additions are not significant enough for most users to make the switch to the Galaxy S5. Before the Galaxy S5 was officially announced, there were rumors suggesting that Samsung would launch a metal-clad version of the device which featured 3 GB RAM and a quad-HD screen. Those rumors notwithstanding, a significant chunk of users are now looking at alternatives. LG’s G3 is the most likely contender, with leaked benchmarks revealing a device with a 2K screen, 3 GB RAM and LG’s custom octa-core 64-bit CPU.

The Galaxy S5 does not offer a significantly altered design nor additional processing power for it to warrant interest from users who already have the Galaxy S4 or a similar handset.



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