Samsung is expecting a big drop in third-quarter earnings. Dan Costa, editor in chief of PC Mag.com says it's a natural progression on top of a number of other reasons, including too many products.
Costa points out that what has always made Samsung unique is that the company puts devices out in every single product category.
Samsung has an assortment of smartwatches, different-size phones and tablets, a number of laptops, the list goes on and on. "It's always been their strategy to throw everything against the wall and see what sticks. They've had some great success with that," said Costa. But he adds, "The problem is when you make that many different types of devices, your costs go up and you have to endure a lot of failures."
Samsung needs to focus its product lineup on things that are actually going to work, according to Costa.
"They could really take a page out of Apple's book here. When a company doesn't move until it knows it has a winner. Samsung is going to have to adapt some of that if it's going to be profitable going forward," Costa said.
He points out a few other headwinds Samsung faced this quarter. He said Apple's iPhones hurt Samsung in the luxury market, while Lenovo and Huawei have been dominating in developing countries.
Costa's not too worried about Samsung though, "There's still lots of room to run for Samsung."