Samsung issues apology for lagging innovation, vows to regain competitive edge

Samsung Electronics has openly acknowledged its recent shortcomings in an official letter following the release of its Q3 2024 earnings guidance.

In Short

• Samsung apologises for lagging innovation and not meeting user expectations
• It promises technological advancements to regain Samsung's competitive market edge
• Company vows to improve internal communication and address performance issues

Samsung Electronics has openly acknowledged its recent shortcomings in an official letter following the release of its Q3 2024 earnings guidance, The Verge reported. The company has been facing growing criticism for its lack of innovation, particularly in its smartphone and semiconductor divisions, which were once considered industry leaders. The letter, penned by newly appointed Vice President of Device Solutions, Jeon Young-Hyun, was published on Samsung’s Korean newsroom website and sent a clear message to customers, employees, and shareholders alike.

The apology comes after Samsung projected an operating profit of approximately 9.2 trillion Korean won (about $6.8 billion) for Q3 2024. While profitable, the figure fell short of market expectations, raising concerns about the company’s ability to stay ahead in the rapidly evolving tech sector. Samsung’s flagship devices, such as the Galaxy S24 Ultra, while solid in performance, have been criticised in the US market for being too similar to their predecessors. This trend has been seen across other Samsung divisions, including memory and chipsets, where the company once held a dominant position but is now facing stiff competition.

In the open letter, Jeon Young-Hyun acknowledged these issues, expressing concern about Samsung’s declining technological edge. He emphasised that the company has always been able to turn a crisis into an opportunity and promised that Samsung would do so again this time. Rather than relying on quick fixes, he assured stakeholders that Samsung is focused on securing “fundamental competitiveness” and pursuing technological advancements that do not yet exist in the market.

"We will fearlessly pioneer the future and cling to our goals until we achieve them," Jeon wrote. He also mentioned plans to improve the company’s organisational culture, calling for better internal communication and swift action to address any problems.

The letter specifically pointed to Samsung’s not-so-great 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 much-anticipated models to come.

While the company’s public apology is a bold move, it remains to be seen whether Samsung can meet the high expectations it has set for itself. The tech giant has promised innovation and improvement.