SEOUL: The
latest version of Samsung's flagship Galaxy smartphone went on sale
worldwide Friday, days after the electronics giant announced it was
facing a second consecutive quarter of profit decline.
The
Galaxy S5 has a lot riding on it to steer the South Korean firm's
profit-making machine back on track as growth in smartphone sales slows,
with mature markets like North America and Europe near saturation.
Reviews
of the S5 have mostly concluded that it is one of the best high-end
smartphones on the market, but there is also a general consensus that it
lacks the "wow" factor needed to differentiate it from its predecessors
and competitors.
"It can swim, but it won't make any
waves," was the verdict of the Wall Street Journal, referring to one
innovation in the S5's waterproof covering.
"The Galaxy S5 is a good phone. It earns an unreserved recommendation," said the Washington Post.
"But the truth of the matter is that there's really nothing here that's worth breaking your contract to buy," it added.
Samsung's
mobile unit has been the driving force behind the record profits of
recent years, and it needs the S5 to perform well as a retort to
doom-mongers who say the company lacks a clear strategy to flourish in
an increasingly competitive, saturated market.
Samsung
made more than 30 percent of all smartphones sold in the world last
year, nearly twice the share of its arch-rival Apple.
But
on Tuesday, the company estimated its first quarter operating profit at
8.4 trillion won ($7.96 billion), marking a second straight year-on-year
decline.
As well as the constant challenge from Apple,
Samsung has had to face the rapid expansion of smaller rivals like
China's Huawei, which has pressured it into rolling out cheaper handsets
to woo consumers in emerging markets, especially China.
-- Falling smartphone prices --
In
a sign of the challenge the company faces, the S5 was priced lower at
its commercial launch Friday than the previous S4 model.
Research
firm IDC estimated the average selling price of smartphones will fall
to $265 globally by 2017 from $337 in 2013 and $387 in 2012.
Samsung
is believed to have reduced its marketing spend on the S5 and is also
under pressure to set aside more cash for legal bills as years-long
patent battles against Apple continue.
The two have locked
horns in patent suits in several nations involving design and
technologies on their smartphones and tablet computers.
A
fresh patent trial opened in the United States last week, with Apple
vowing to prove that Samsung flagrantly copied iPhone features and
should pay more than $2 billion in damages.
Major handset
makers have recently stepped up efforts to develop wearable devices,
seen as a new source for growth -- though few have managed to garner
large consumer excitement or sales.
Samsung's first
Internet-enabled smartwatch, introduced last September, was greeted
coldly by consumers who viewed it unfashionable. Its second edition, the
Gear 2, was launched in February.
Apple is believed to be
planning its own smartwatch launch soon, while Google is moving towards
a wider consumer launch of its Internet-enabled eyewear Glass.
