Samsung suffers disappointing slump as it continues with hype bubble deflating

Samsung Electronics Co. saw a 10-month low in Korea following a disappointing performance from its latest smartphones against Apple. The company's stocks dove 3.2 percent to 1,104,000 won (AU $1267.29) on Aug. 17, and its recent slew of devices may not help its recovery as it could affect its hype bubble and confuse consumers further, analysts said.

This is the company's lowest since Oct. 28, according to Bloomberg. More importantly, the Korean-tech giant has seen a 17 percent fall this year, heading for its third consecutive annual decline. The release of a new set of phones just this month is also not doing Samsung well. According to The Verge, although Samsung may have accomplished several things in the past week -- releasing two high-end phones and opening pre-orders right away -- the company has also alienated its most loyal customers. The release of the new handsets may confuse users on why they should buy the immediately available units.

Samsung introduced the Galaxy Note 5 and S6 Edge Plus featuring wraparound screens in the previous week in hopes of reviving sales and growth, after facing fierce competition from Xiaomi and Apple.

According to Yoo Eui Hyung, an analyst with Dongbu Securities Co. in Seoul, “Last week’s unpacking event was very disappointing… We should now admit that new smartphones are no longer a thing that can reverse the profit decline.”

Despite the company's best intentions, its product choices may have been more detrimental to its growth than helpful. To many hardcore fans, the fresh Note series appears more like a regression of the product, including featuring smaller battery. It also lacks microSD support. The presentation of the Edge's screen was also not well-received as the company failed to deliver a clear message on why people should buy it.

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