Samsung has long been a pioneer in mobile innovation, known for reshaping the smartphone landscape with groundbreaking devices.
One could argue that the company set the stage for large-screen smartphones with the introduction of the Galaxy Note in 2011, and later brought foldable technology to the masses with the Galaxy Z Fold in 2019.
However, in recent years, the tech giant seems to have lost some of its edge, especially when it comes to innovation.
Take the Samsung Galaxy S24 Ultra, for instance. While it remains a top-tier phone in terms of performance, it doesn’t stand out much from its predecessor, the Galaxy S23 Ultra, which itself was a modest upgrade from the Galaxy S22 Ultra.
This trend of incremental upgrades has left many Samsung fans feeling underwhelmed.
The lack of significant innovation isn’t just limited to smartphones; Samsung’s memory and chipset divisions, once leaders in their segments, are now struggling to keep up with competitors.
Samsung Acknowledges Shortcomings, Issues Apology
In response to these concerns, Samsung has taken the unusual step of issuing an open apology to its customers, employees, and shareholders.
This comes after the company announced its earnings guidance for Q3 2024, where it expects to generate an operating profit of 9.2 trillion Korean won (approximately $6.8 billion).
Although these are impressive numbers, they fall nearly $900 million short of analysts’ expectations.
The apology was penned by Samsung’s newly appointed Vice President of Device Solutions, Jeon Young-Hyun, and published in the company’s Korean newsroom.
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In the letter, Samsung Electronics’ management acknowledges that the company’s performance has not met market expectations, leading to concerns about the company’s long-term technological competitiveness and future.
Turning a Crisis into an Opportunity
Despite the setbacks, Samsung remains optimistic about its future. The letter highlights Samsung’s history of turning crises into opportunities and reassures stakeholders that the company will do the same in this instance.
“We will fearlessly pioneer the future and cling to our goals until the end,” the letter states, reflecting Samsung’s commitment to correcting its course.
The apology also addresses the company’s poor performance in its memory, semiconductor, and chipset divisions, emphasizing how closely these are tied to the smartphone business.
Samsung believes that any technological advancements in these areas will benefit future Galaxy smartphones.
A Bold Promise to Rebuild and Innovate
Samsung’s open admission of its shortcomings and its promises for the future are refreshing in the competitive tech landscape.
The company is pledging to restore its “fundamental technological competitiveness” and improve its organizational culture, fixing any immediate issues that require attention.
Moreover, the letter stresses that Samsung will not seek short-term solutions but instead focus on long-term growth through innovative technologies.
Will Samsung Reclaim Its Innovation Leadership?
Samsung’s apology is a rare and bold acknowledgment of its recent failures to innovate.
The promise to “re-arm ourselves with a challenging spirit” shows the company is committed to more than just catching up—it aims to lead the industry once again.
However, while the company has outlined a clear plan for bouncing back, the real test lies in its ability to deliver on these promises.
Full Apology Letter from Samsung
Below is the full text of the apology, as translated by Google Translate:
“To our customers, investors, and employees who have always loved Samsung Electronics, Today, we, the management of Samsung Electronics, would like to first apologize to you.”
“The performance that fell short of market expectations has raised concerns about the fundamental technological competitiveness and the future of the company. Many people are talking about Samsung’s crisis. All of this responsibility lies with us who are leading the business.”
“Samsung has a history of challenge, innovation, and overcoming that has always turned crises into opportunities. We will definitely make the serious situation we are currently facing into an opportunity for a leap forward. Our management will take the lead in overcoming the crisis. Above all, we will restore the fundamental competitiveness of technology. Technology and quality are our lifeblood. It is Samsung Electronics’ pride that we can never compromise on. Rather than short-term solutions, we will secure fundamental competitiveness.”
“Furthermore, I believe that only new technologies that do not exist in the world and perfect quality competitiveness are the only ways for Samsung Electronics to make a comeback.”
“Second, we will prepare for the future more thoroughly. We will rekindle our unique passion to fearlessly pioneer the future and to cling to our goals until the end and achieve them. We will re-arm ourselves with a challenging spirit to run toward a higher goal rather than a defensive mindset to protect what we have.”
“Third, we will reexamine our organizational culture and work methods and immediately fix what needs to be fixed. We will rebuild our traditional organizational culture of trust and communication. If we find a problem in the field, we will expose it and have a heated discussion to improve it. In particular, we will actively communicate with investors whenever we have the opportunity.”
“I am confident that if we challenge ourselves fiercely, we can definitely turn the current crisis into a new opportunity. I ask for your support and encouragement so that Samsung Electronics can once again demonstrate its strength.”
