10 April 2014
Last updated at 19:09 ET
Several analysts suggest the high-end market is becoming saturated, meaning most people wanting a premium phone already own one, making it harder to sell them another.
"Year to date, the share price of Samsung Electronics continues to underperform both in absolute terms and against the Kospi [Korea Composite Stock Price Index] as well," Taewoo Kim, portfolio manager of Fidelity's Korea fund tells the BBC.
"This weak performance reflected investors' concerns on its smartphone business particularly in the high-end segment as a result of elevated competition."
But Mr Kim believes things are about to improve, thanks in part
to the improving performance of Samsung Electronic's memory and home
appliance divisions.
The new Galaxy could guarantee such a turnaround if consumers warm to its water-resistant build, improved camera and fitness-tracking facilities.
To mark the S5's global launch the BBC asked four experts for their thoughts:
Under the hood Samsung has packed in all the latest technology to make this a powerhouse.
There's raw processing power and battery performance to get you though the day, fronted by a stunning 5.1in (13cm) display, with a camera that offers nice vibrant photos and the option for 4K ultra-high definition video capture, ready for the next generation.
The Samsung Galaxy S5 is undoubtedly a great device, we're just not convinced it's the greatest.
This is symptomatic of the maturity of the smartphone market, where ground-breaking innovations are hard to come by.
Take the S5 - one of its headline features is a heart rate monitor, which is hard to see as much more than a gimmick.
It's true that consumers do use heart rate monitors for running and cycling, but these activities demand specialist devices that provide the constant monitoring required, rather than the one-off measurements offered by the S5.
The smartphone isn't going away any time soon, but if you are looking for the latest innovations then look instead at the myriad of wearables and smart accessories that are starting to flood on to the market.
Prof Sea-Jin Chang, National University of Singapore
Samsung is also trying very hard to create differentiation-based advantages by offering complementary products and services such as wearable pieces, contents and software.
It has already expanded its product offerings in the medium to low-end segments, which will affect its pricing in the high-end segment.
Yet, Samsung is driven by strong execution-oriented culture, and will remain competitive in the future."
Evan Blass, @evleaks
While the transition from the S4 to S5 involved only minor spec bumps, we'll probably see Samsung in a position of playing catch up with rival LG, whose upcoming G3 handset is rumoured to feature a higher resolution display.
Likewise, we should see a more substantial jump in processor speeds, as well as a move from 32-bit to 64-bit chip architecture - a choice which would help developers offer the same apps on disparate platforms.
More on This Story
Galaxy S5: Expert views on Samsung's latest smartphone
Video:
http://www.bbc.com/news/technology-26971025
Rory Cellan-Jones tests out the Samsung S5
The Galaxy S5's new heart rate reader could come in useful for Samsung Electronic's investors.
The South Korean firm warned earlier this week that it expected its profits to fall for the second quarter running.Several analysts suggest the high-end market is becoming saturated, meaning most people wanting a premium phone already own one, making it harder to sell them another.
"Year to date, the share price of Samsung Electronics continues to underperform both in absolute terms and against the Kospi [Korea Composite Stock Price Index] as well," Taewoo Kim, portfolio manager of Fidelity's Korea fund tells the BBC.
"This weak performance reflected investors' concerns on its smartphone business particularly in the high-end segment as a result of elevated competition."
The new Galaxy could guarantee such a turnaround if consumers warm to its water-resistant build, improved camera and fitness-tracking facilities.
To mark the S5's global launch the BBC asked four experts for their thoughts:
Continue reading the main story
Chris Hall, Pocket-lint
"Samsung has packed in all the latest technology to make this a powerhouse”
The Samsung Galaxy S5 plays it safe on
design, sticking to a tried and tested formula with its plastic body and
chrome-trimmed finish.
There's plenty of grip around the back and you still have the
advantage of being able to change the battery, both to the phone's
credit.Under the hood Samsung has packed in all the latest technology to make this a powerhouse.
There's raw processing power and battery performance to get you though the day, fronted by a stunning 5.1in (13cm) display, with a camera that offers nice vibrant photos and the option for 4K ultra-high definition video capture, ready for the next generation.
Continue reading the main story
Chris Hall
- Editor of gadget news site Pocket-lint
- Believes tech should be simple because life is already complicated enough
But the implementation of the
fingerprint scanner isn't as tidy as the iPhone and we're not convinced
that the heart rate sensor was a feature that anybody was crying out
for.
There is a huge number of features on offer making for a
super-connected device, but we feel the user interface could be a little
slicker and faster.The Samsung Galaxy S5 is undoubtedly a great device, we're just not convinced it's the greatest.
Continue reading the main story
Nick Dillon, Ovum
"A heart rate monitor... is hard to see as much more than a gimmick”
The Samsung S5 launch was largely
underwhelming and I think that most consumers will be hard pressed to
tell the difference between the new phone and last year's model.
Whereas handset launches used to have us on the edge of our seats, they have increasingly lost their wow factor.This is symptomatic of the maturity of the smartphone market, where ground-breaking innovations are hard to come by.
Take the S5 - one of its headline features is a heart rate monitor, which is hard to see as much more than a gimmick.
It's true that consumers do use heart rate monitors for running and cycling, but these activities demand specialist devices that provide the constant monitoring required, rather than the one-off measurements offered by the S5.
Continue reading the main story
Nick Dillon
- Senior analyst at the technology consultancy Ovum
- Specialises in smartphone and tablet devices and software
And this perhaps shows us where
innovation will come from in the future, where the individual functions
of the device are broken out into wearable devices and accessories that
connect back into a smartphone.
Of course Samsung itself is not blind to this trend and spent
almost an equal amount of time at the S5 launch talking about its new
smartwatches and connected fitness band.The smartphone isn't going away any time soon, but if you are looking for the latest innovations then look instead at the myriad of wearables and smart accessories that are starting to flood on to the market.
Prof Sea-Jin Chang, National University of Singapore
While many Chinese players rush to
introduce low-end smartphones at a half or even one-third of the prices
of Samsung's, Samsung will not easily lose its market share.
Samsung has invested a lot on its brand for many years and is
now considered as cool and sharp among its dedicated users - although
not as loyal as Apple's.Samsung is also trying very hard to create differentiation-based advantages by offering complementary products and services such as wearable pieces, contents and software.
Continue reading the main story
Sea-Jin Chang
- Professor of business administration at the National University of Singapore
- Author of the book, Sony v Samsung: The Inside Story of the Electronics Giants Battle for Global Supremacy
If home electronics networks -
including freezers, air-conditioning, washing machines - become a
reality in the near future, it will be in the best position to integrate
all the devices.
While I expect Samsung will not easily lose market share to its competitors, its profit margin will be severely under pressure.It has already expanded its product offerings in the medium to low-end segments, which will affect its pricing in the high-end segment.
Yet, Samsung is driven by strong execution-oriented culture, and will remain competitive in the future."
Evan Blass, @evleaks
With Samsung poised to release its
latest flagship smartphone, the Galaxy S5, there are some of us whose
minds are already focused nearly a year down the road: on the presumed
Galaxy S6.
Unlike this past cycle, the South Korean giant will very
likely be forced to make significant upgrades in the area of
specifications.While the transition from the S4 to S5 involved only minor spec bumps, we'll probably see Samsung in a position of playing catch up with rival LG, whose upcoming G3 handset is rumoured to feature a higher resolution display.
Likewise, we should see a more substantial jump in processor speeds, as well as a move from 32-bit to 64-bit chip architecture - a choice which would help developers offer the same apps on disparate platforms.
Continue reading the main story
Evan Blass
- Runs a Twitter feed known for revealing smartphone specifications before they are formally announced
- Previously an editor at the tech site Engadget
Samsung also has a growing
problem it needs to address which has nothing to do with spec parity:
consumers are yearning for the company to begin employing more premium
materials like the aluminium of the HTC One or wood backs on the Moto X.
Until Samsung is ready to take mass production to the next
level - in the areas of software and hardware alike - there is always
going to be a relatively easy marketing strategy rivals can employ to
capture market share.
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