With Apple continuing to outperform Samsung on the global stage, garnering 40 percent more high-end smartphone sales with its iPhone compared with Samsung's flagship Galaxy line, the Korean tech manufacturer has said its top executives will be taking a pay cut to offset losses.
The announcement comes as Microsoft announces 18,000 job layoffs over the next 12 months.
The move is likely to help Samsung continue to push out new ideas and continue to battle Apple in the global smartphone marketplace without being forced to let thousands of paid employees go. The move is seen by analysts as a positive step toward Samsung's efforts for better business practices.
But it should not be a means of avoiding the realities of the market at present, where Apple continues to dominate Samsung in the smartphone sector.
New research shows the Galaxy S5, despite widespread popular reviews that it's faster and more innovative than the iPhone 5s, continues to be well behind Apple's top device in sales. This comes even as Apple prepares to launch the iPhone 6 later this fall, which is expected to be a top seller almost immediately upon release.
The new findings from Korea-based research company Counterpoint of around 90 percent of global sales showed that the iPhone 5s sold around seven million devices in May to Samsung's five million Galaxy S5's that were bought.
"This is a worldwide problem for Samsung," said Counterpoint Research Director Peter Richardson. "Their range is broad and deep, but they haven't looked after their midrange line, which is getting a little long in the tooth by now."
With dropping revenue, Samsung is likely to look into the midlevel smartphone sector and has discussed the potential of launching a version of the S5 that is not fully equipped but is cheaper and more accessible to the wider population.
Still, with Apple continuing to dominate the market, largely on its advertising and PR campaigns across multiple markets, it is an uphill battle. However, it's one that Samsung executives appear willing to fight as long as they are unwilling to sacrifice employees for their personal earnings.
