A visitor holds a new Samsung Galaxy Note 4 smartphone at the Unpacked 2014 Episode 2 event ahead of the IFA Electronics show in Berlin, September 3, 2014. [Photo/Agencies]

Needing a big hit

While the new Note device appears to meet expectations on key features such as the quad high-definition display and a 16-megapixel rear-facing camera, the improvements are incremental and suggest further struggles ahead for Samsung to differentiate its product, especially with large-screen iPhones on the way.

"It is an acknowledgement that Samsung took a wrong turn with the move into plastic cases and that its designs didn't move fast enough to keep pace with many competitors," said Ben Wood, a mobile industry analyst with UK-based CCS Insight.

"The importance of metal cases is that it directly translates into bigger, edge-to-edge screens," he said.

Samsung also showed off a limited-edition version of the Note with a curved edge screen on one of the phone's sides, helping users to stay focused on their main screen without having to respond to calendar reminders or incoming emails.

It demonstrated a Virtual Reality headset that turns the Note 4 into the sort of immersive gaming platform once confined to consoles.

The Korean electronics giant says it will get more aggressive on pricing and focus on a narrower set of products for its mid-to-low tier products. The moves could help Samsung staunch a loss of market share but would inevitably undercut profit margins.

Mean estimates from a Thomson Reuters I/B/E/S survey of 40 analysts tips Samsung's third quarter operating profit to slide to 7 trillion Korean won ($6.86 billion), the weakest since the second quarter of 2012 and all but guaranteeing the company's first annual profit decline in three years.

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