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Will Samsung Be Able to Repair Its Brand Image?

Currently, Samsung (SSNLF) and Apple ( AAPL ) are the two foremost players in the worldwide smartphone industry followed by Huawei at the third position. Samsung is the undisputed leader in the smartphone industry, as it holds 21% market share, whereas Apple holds just 12.5% market share.

Samsung was off to a great start in 2016, and the company's momentum got a boost soon after the launch of its latest flagship Galaxy S7 models. According to, before the launch of the Apple iPhone 7 Plus, the Galaxy S7 Edge was the world's best smartphone. Samsung's Galaxy S7 Edge successfully managed to hold the world's best smartphone position for over six months.

After the launch of the Galaxy S7 models, Samsung launched its new flagship Galaxy Note 7, which was intended to be a tough competitor for Apple's iPhone 7 models. Everything was moving in the right direction and in favour of Samsung until the Note 7 models started exploding.

At the end, Samsung was forced to terminate the production of Note 7 models and also announced an official recall of Note 7 devices because of the safety issues. The company reported that some batteries were irregularly sized that resulted in overheating, whereas others had manufacturing defects. The detailed explanation on this topic will be unveiled on Jan. 23.

Despite facing a severe problem, Samsung managed to remain in the green in 2016, thanks to the popularity of the Galaxy S7 models. However, the company is trying hard to recover from the damage caused to its brand.

For Samsung, a quick comeback is essential for the sake of its reputation. The company's comeback phone could be its next flagship Galaxy S8 model. It is likely that Samsung will unveil its next flagship device next month at its upcoming Galaxy Unpacked event in Barcelona, ahead of MWC.

There are several rumours that Galaxy S8 will include a 4K screen, a mini projector, a 30 megapixel camera, 6GB of RAM, a mammoth battery as well as a supercharged processor.

Summing up

Samsung is well aware of its mistake and trying hard to repair its brand image. Samsung's Galaxy S7 models became very popular in 2016, and same is expected from its upcoming flagship models this year. In comparison to Apple, Samsung brings more innovation in its devices, which make it a better investment candidate.

Disclosure: No position in the stocks mentioned in this article.

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This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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