It appears as though Samsung Electronics (NASDAQOTH: SSNLF), will present its Galaxy S5 smartphone at the Mobile World Congress trade show in Barcelona later this month. For a company that is known for unveiling its smartphones in style, Samsung is being quiet about the S5. Samsung hasn't said much about the event either, except to call it "Unpacked 5." The company announced both the Galaxy S4 and Galaxy Note 3 smartphones at "Unpacked" events also. This could explain how the rumor about the arrival of the Galaxy S5 got started.
Will the Galaxy S5 have new technology?
There has also been talk about Samsung's new flagship smartphone having new technologies. The S5 is rumored to have either an eye scanner or an ultra-high resolution Quad HD display. The eye scanner, if the Galaxy 5S has one, will be capable of identifying the phone's owner. Either of these new technologies should be reason enough for Samsung to unveil the S5 in style.
Yet last month, Lee Young-hee, executive vice president of Samsung's mobile business, contradicted the possibility of new technologies in an interview with Bloomberg. "For the S5, we will go back to the basics. Mostly, it's about the display and the feel of the cover." Could Young-hee's statement be Samsung's way of putting these rumors to rest?
Who else will be at the trade show?
Some of Samsung's rivals will also be in attendance at the Mobile World Congress trade show. LG Electronics, Huawei, HTC, and Nokia all have product events or press conferences slated for February 23 or 24. Samsung's biggest competitors, Lenovo and Apple, are not expected to be at the event, but they will likely keep their eye on it.
Lenovo bought Motorola Mobility last month, and will now have use of many of Motorola's patents. Lenovo is sure to use those smartphone patents to develop a phone which is capable of competing with Samsung's Galaxy series.
The fact that both Samsung and Lenovo smartphones will be running off of Motorola's Android operating system should make things more interesting. Apple released its iPhone 5s last month to China Mobile's subscribers for the first time, and reported sales of a record 51 million iPhones. Apple also reported a quarterly net profit of $13.1 billion. Both Lenovo and Apple are looking to take Samsung's place as the world's leading seller of smartphones by unit.
Final thoughts
Yes, Samsung investors have become somewhat worried. Two reasons being the company posting flat profits from mobile in the fourth quarter and its drop in sales during the third quarter. There are even Samsung investors who lack confidence in the Galaxy S5. But Samsung recently revealed its plans to cut its mobile marketing spending relative to revenue. The company's lack of promoting its new flagship smartphone is most likely a part of its new mobile marketing strategy.
Samsung Electronics couldn't have become number one without a competitive business strategy. In fact, Samsung may believe the Galaxy S5 is good enough to speak for itself after it is released. Samsung smartphones have a loyal market, and that market is most likely waiting for the Galaxy S5 to arrive, with or without a big party.
