Samsung apologizes for lagging behind in innovation, pledges to gain competitive edge
Samsung Electronics has openly acknowledged its recent shortcomings in an official letter following the release of its Q3 2024 earnings guidance.
listen to the story
Samsung Electronics has openly acknowledged its recent shortcomings in an official letter following the release of its Q3 2024 earnings guidance. The Verge Informed. The company is facing increasing criticism for its lack of innovation, particularly in its smartphone and semiconductor divisions, which were once considered leaders in the industry. The letter, written by Jeon Young-hyun, newly appointed vice president of Device Solutions, was published on Samsung’s Korean newsroom website and sent a clear message to customers, employees, and shareholders alike.
The apology comes after Samsung had forecast operating profit of about 9.2 trillion Korean won (about $6.8 billion) for the third quarter of 2024. Despite being profitable, the figure fell short of market expectations, raising concerns about the company’s ability to stay ahead in the rapidly evolving technology sector. , Samsung’s flagship devices, such as the Galaxy S24 Ultra, have been criticized for being too similar to their predecessors in the US market, despite being solid in performance. This trend has been seen in Samsung’s other divisions, including memory and chipsets, where the company once held a dominant position but now faces stiff competition.
In the open letter, Jeon Young-hyun acknowledged these issues while expressing concern about Samsung’s declining technological edge. He emphasized that the company has always been able to turn crisis into opportunity and promised that Samsung will do so again this time. Rather than relying on quick fixes, he assured stakeholders that Samsung is focusing on regaining “fundamental competitiveness” and pursuing technological advancements that do not yet exist in the market.
“We will lead the future fearlessly and will stick to our goals until we achieve them,” Jeon wrote. He also mentioned plans to improve the company’s organizational culture, calling for better internal communication and quicker action to resolve any problems.
The letter specifically points out Samsung’s not-so-good performance in the memory, semiconductor and chipset sectors, divisions closely linked to its smartphone business. A technological breakthrough in these areas could have a significant impact on the performance of future Galaxy smartphones, including the highly anticipated upcoming models.
Although the company’s public apology is a bold move, it remains to be seen whether Samsung can live up to the high expectations it has set for itself. The tech giant has promised innovation and improvement.
