Samsung finally has good news to trumpet

Troubled company hopes to turn the page with expected unveiling of Galaxy S8 phone

Good news for a change from Samsung? Yes, it’s possible.

For months, Samsung Electronics has been synonymous with bad tidings. Prior to Wednesday’s expected introduction of the Galaxy S8 smartphone in New York, it has been one steady drumbeat. Combustible Galaxy Note 7 devices. The head of the company indicted on bribery and embezzlement charges. Under siege from competitors with new smartphones.

Samsung’s flagship smartphone could go a long way toward making people forget about fiery phones and its leader, Lee Jaeyong, whose trial began this month in South Korea. The technology giant says Lee did nothing wrong and will be vindicated in court. Four other Samsung senior executives were indicted in February on the same corruption charges as Lee; three resigned.

On Friday, Samsung Vice Chairman Kwon Oh- hyun apologized for the smartphone maker’s recent scandals at its annual shareholder meeting in Seoul. “I apologize once again for the mistake with the Note 7 last year,” he said. “It was a failure that arose from trying new technology.”

On Wednesday, Samsung is betting a franchise product changes the corporate narrative. Analysts say the S8 should give Samsung a jump on rival Apple, which is expected to unveil a major refresh to the iPhone in September. Samsung skipped a phone launch at Mobile World Congress this month, where it typically makes a splash, letting rival LG Electronics steal some of the limelight with its water- resistant G6 Android phone.

Wednesday will be Samsung’s first major smartphone announcement since the ill- fated Note 7 in August.

“It’s obviously been a tough few months for Samsung,” says Jan Dawson, head of Jackdaw Research. “Samsung could really use some big news that generates excitement and positive coverage. The S8 launch is the best nearterm opportunity.”

If not for Uber’s recent stumbles, Samsung might be tech’s dysfunctional story of the moment. The global recall of 2.5 million Note 7s, at a cost of about $ 6 billion to the company, lost it not only mind share but market share.

Samsung smartphone sales fell 8% in the last three months of 2016 and nearly 3% for the year, according to market researcher Gartner. It was the company’s second consecutive quarter of declining sales.

As recently as early March, international travelers were still being warned to turn off their Note 7 devices before boarding flights.

It all might change, however, if consumers take a shine to the S8. Indeed, Samsung’s stock reached a record high in March thanks to strong semiconductor sales and the possibility of a major corporate restructuring.

“Whatever the stench was, the products are great, notwithstanding the Note 7 mistake,” says Matt Quint, director of the Center on Global Brand Leadership at Columbia Business School. “Samsung will rebound because ( S8) is a franchise product, and U. S. consumers probably don’t care about an unknown executive in South Korea.”

“Now, if it had been Tim Cook, that would be an entirely different impact,” Quint says.

Samsung also has the advantage of being an enormous company ( revenue $ 179 billion in 2016) not wholly dependent on handheld devices. It boasts a constellation of technology divisions ( TVs, semiconductors, appliances) that dwarf smartphones.

“Whatever the stench was, the products are great, notwithstanding the Note 7 mistake.” Matt Quint, director, Center on Global Brand Leadership at Columbia Business School