Samsung suffers blow over poor performance of flagship phone

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Samsung suffers blow over poor performance of flagship phone
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The extent to which its Game Optimising Service slows the S22, a lack of details about the software in marketing material and the inability to disable it, have set social media alight

The logo of Samsung Electronics is seen at its office building in Seoul, South Korea, on March 23 2018. Picture: REUTERS/KIM HONG-JI

The controversy represents a blow to Samsung’s reputation for high-end handsets — and potentially its finances — as it tries to make up for two years of premium sales that missed analyst estimates and reverse a decline in market share. The extent to which GOS slows the S22, lack of details about the software in marketing materials, and the inability to disable it set social media alight.

Still, South Korea's three major telecom providers have nearly doubled subsidies for the S22, pushing its price as low as 549,000 won from a launch of 999,000 won. Apple’s iPhone 13, released in October, starts at 1,090,000 won with carriers offering smaller subsidies of around 150,000 won. Still, Lee at Eugene Investment & Securities, expects the GOS furore to combine with increased component costs to leave April-June operating profit at Samsung's mobile arm at 3-trillion won, down from a previous forecast of 3.4-trillion won.

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