Galaxy S5 Sold 40% Fewer Units than Samsung Predicted This Year

[Tech_Dreamer]

Apparently the Galaxy is not expanding

@OriginalPromise

 

News comes courtesy of WSJ & TLDR is at the very bottom

 

According to the report due to the decreased sales in their flagship mobile galaxy line which comparatively sold far less than previous flagship models Samsung is considering a shake up in their management,

 

Samsung’s had a brutal year so far in which third-quarter profit fell 60% amid market-share declines in smartphones around the world.

 

 

In China, Samsung’s second-largest market by revenue, Galaxy S5 sales were down by about 50% from those of its direct predecessor during the first six months that the device was on sale.

 

Samsung reportedly overestimated how much stock would be needed, leading to an increased advertising spend to get rid of units that were "piling up in warehouses."

 

 

 

In one scenario under discussion, co-chief executive and mobile head J.K. Shin who had presided over Samsung’s rapid ascent as well as its recent tumble in smartphones could be moved out of his role overseeing the mobile division. That could mean Mr. Shin, 58 years old, loses his co-CEO role.

 

 

 

   ‘‘The company is not coping with the performance of the business very well. Morale is beaten down.’’

                                                                                

                                                                                                                  - A person familiar with Samsung’s to WSJ

 

 

 

Samsung sold about 40% fewer Galaxy S5 smartphones than expected, with about 12 million units sold to consumers in the first three months since April compared with about 16 million units for the preceding flagship phone

 

Samsung has been feeling the heat from low-cost smartphone makers in China, India and other countries.Also Samsung has cut orders for its Galaxy S4 (last year's flagship phone) back to 5 million units from 6 million units.

 

Sad Samsung is Sad..

 

 

 

Samsung sold about 40% fewer Galaxy S5 smartphones than expected, with about 12 million units sold to consumers in the first three months since April compared with about 16 million units for the preceding flagship phone

 

 

the Galaxy S4, according to people familiar with the matter. Only in one major market did Samsung sell more Galaxy S5 smartphones than it did the S4 & that is in the U.S., Which is Samsung’s biggest market,

 

 

Samsung produced about 20% more devices than it did of the Galaxy S5’s predecessor, basing the numbers on a survey of its carrier partners around the world, who were asked to predict demand but who weren’t on the hook for any unsold devices,

 

The news is all speculation with a solid backing from trusted source , as Samsung declined to comment on the subject from various other news sources quoting that "We don't comment on rumors and speculation"

 

Pretty harsh news for Sam boys (especially @OriginalPromise)   ,What are your thoughts on this? leave a comment down below...

 

Bonus:

 

Source Link : http://online.wsj.com/articles/samsung-considering-shake-up-in-management-1416783847

News Link    : http://www.theverge.com/2014/11/24/7273817/samsung-management-shakeup

 

TLDR: Samsung S5 wasn't as successful as S4 around the world except in the US, Company starts to point fingers, some top level persons involved will either be changed or fired.

[werto165]

Was it really that much better than the s3 or s4? 

[WereCat]

I am not surprised.

 

Was it really that much better than the s3 or s4? 

I doubt it.

[nicholaswillems]

Well it's full of things like a half-functioning fingerprint sensor and a heart rate monitor that doesn't work at all. There are way better (less plastic-like) phones in the price range or at way lower price ranges (Oneplus).

[qwertywarrior]

just have the ability to choose stock android without the bloatware just like on lenovo phones and ur sales will sky rocket

[Lord Baal]

Unless they release a waterproof variant like the S4 Active I can't even consider the S5 but a buddy managed to upgrade his S4 he dropped and broke to a S5 at no cost due to the insurance included in his plan he seems pretty happy with it compared to his S4. Personally I'll just stick to the Xperia  Z series until they have some real competition.

[SpaceCore]

40% is a lot.

damn.

 

some guys in suits somewhere in a meeting room are super butthurt right now.

[Trik'Stari]

40% is a lot.

damn.

 

some guys in suits somewhere in a meeting room are super butthurt right now.

Probably as butthurt as some suits at microsoft in charge of the Xbox division.

[ZetZet]

S5 has many useless features that no one needs so when they look at specs or buy them in store S4 is cheaper and it looks just as good so it wins 8 times out of 10.

[landon418]

Hell, most people in the u.s. are on contracts, myself included. I'm still using my gs3 and I'm about to get a lollipop ROM in a day or two. My phone still works great except for random reboots every now and then. So why upgrade each year? I would love to get a nexus 6 since it's on Verizon now, but I blew my money on watercooling.

[Real_PhillBert]

@Tech_Dreamer that is a hell of a good post! You put some effort into it, and it certainly shows. Thanks.

 

I think the unexpectedly slow sales might have something to do with the S5s lack of impressive specs. Other than having a water resistant version, there really isnt anything to blow your socks off about the S5.

[pk-man]

i'm currently still using a S3 and i really don't see the point in upgrading.  Even if I do upgrade, I might go for other brands.  S5 hasn't really impressed despite being a flagship phone.

[Yoinkerman]

i'm currently still using a S3 and i really don't see the point in upgrading. Even if I do upgrade, I might go for other brands. S5 hasn't really impressed despite being a flagship phone.

This. I wouldn't even be musing about a new phone if mine didn't have a cracked down the middle.

[mr moose]

I can't see why they would have expected sales to go up or even just maintain the same when their new phones offer very little over the older.    

 

Also what did I miss?  12 million is not 40% fewer than 16 million.

 

Quote

Samsung sold about 40% fewer Galaxy S5 smartphones than expected, with about 12 million units sold to consumers in the first three months since April compared with about 16 million units for the preceding flagship phone

[Yoinkerman]

I can't see why they would have expected sales to go up or even just maintain the same when their new phones offer very little over the older.

Also what did I miss? 12 million is not 40% fewer than 16 million.

Quote

If they "expect" 20m phones sold and only sell 12m, it's 40% fewer. How many s4s they sold isn't part of it.

[Slinkey]

Meh, never been a big fan of their phones.

All thought their TVs are nice and monitors.

[mr moose]

If they "expect" 20m phones sold and only sell 12m, it's 40% fewer. How many s4s they sold isn't part of it.

but the quote actually says "with" 12 million compared to 16 million of the proceeding flagship. It is an ambiguous statement.

 

I am not trying to dismiss the truth of article, I think Samsung have really dropped the ball, but it doesn't help that the article contains ambiguous quotes and statistics.

[Tech_Dreamer]

but the quote actually says "with" 12 million compared to 16 million of the proceeding flagship. It is an ambiguous statement.

 

I am not trying to dismiss the truth of article, I think Samsung have really dropped the ball, but it doesn't help that the article contains ambiguous quotes and statistics.

Yeah, agreed , it's sorta confusing , But there's another statement saying that there are numerous shipments that never left the shelves plus the stocks that haven't been opened that they are keeping on account, especially in Asia regions, WSJ got the news from close by people that are working with the company(who refuse to be named in the article). but as i said , it's a solid rumor with legitimate source & samsung is refusing to comment on this ..

[totjup5]

There's so many phones out there now that are superior to Samsung's offerings. Maybe if they tried innovating a bit they'd sell more.

[Yoinkerman]

It says 40% fewer than expected, not 40% fewer than the previous model.

I'm not seeing the ambiguity at all.

[Nineshadow]

I have an S3 and I still have no reason to upgrade to an S5...

Jeez.

 

Gettin' a G3 though.

[mr moose]

Yeah, agreed , it's sorta confusing , But there's another statement saying that there are numerous shipments that never left the shelves plus the stocks that haven't been opened that they are keeping on account, especially in Asia regions, WSJ got the news from close by people that are working with the company(who refuse to be named in the article). but as i said , it's a solid rumor with legitimate source & samsung is refusing to comment on this ..

 

I normally don't mind WSJ, I just had trouble when they started referring to the chines market as second largest by revenue, then the US as largest by sales.  I mean, the best practice is to use standards,  either use revenue as the datum or use total unit sales.  I generally agree with what they are saying, I just don't believe it is ethical to put what appear to be unqualified figures on everything and leave the general population believing something that may not be quite accurate.

 

 

I guess I am just being a little pedantic though, most media outlets are guilty of this, they do print what sells after all.

 

 

 

It says 40% fewer than expected, not 40% fewer than the previous model.

I'm not seeing the ambiguity at all.

 

It all comes down to interpretation,  unless language is specific, this sentence will be interpreted in many different ways.

 

 

 

Samsung sold about 40% fewer Galaxy S5 smartphones than expected, with about 12 million units sold to consumers in the first three months since April compared with about 16 million units for the preceding flagship phone

 

It does not say what the expectation is, therefore the insinuation is that it would match the previous sales.

[Linus_torvalds]

Hell, most people in the u.s. are on contracts, myself included. I'm still using my gs3 and I'm about to get a lollipop ROM in a day or two. My phone still works great except for random reboots every now and then. So why upgrade each year? I would love to get a nexus 6 since it's on Verizon now, but I blew my money on watercooling.

Agree i have Nexus 4 and i got official ANDROID L. I installed, it used it, then installed modified version that has features available only in nexus 5 and nexus 6 and it's super fast. 

 

My phone has everything that every phone in 2014 should have. 

HD DISPLAY, Quad core, 2 GB RAM i will not change it until somewhere 2016.

[TroubleKlef]

This is what happens when your products are based on incomplete features and gimmicks.

[Mystic Mistro]

Im not surpised. Got an S4 not to long after release(before all the shit appeared) worse phone is ever owned...

2 swallowen batteries repleace through warrenty which took 4 months.

phone replaced due to over heating/ internal componants fualty. Took anoyher month.

now im sending.it back agaim becuase my phone is at risk of 'bursting into flames' although the letter from samsung didnt put it like that ill admit.

So ill be on 3rd battery, 3 phone over 5 months of not be able to use a phpne i paid for about a year ago.

Its imsane that all they do is in my case make it very dofficult to get repleent which take an inconsevably long tie to sort out amd arrive. It would be nice to get a sprry which isnt becuase thats what they say to everyone, a new phone thats not an S4 along with some money back from the phone ov been paying for which iv not been able to use. That is a complerely reaaonable expectation from the terrible service and countless faulty parts yet i get sod all.

I hope lile woth ubisoft all the shit bites them in the backside in the end.