Samsung Galaxy S5 sales have come in 40% below projections

Samsung logoTo say that Samsungs mobile division has been hurting lately would be putting it lightly. In the companys most recent earnings report, the companys mobile division reported a 74 percent drop in profit from $5.7 billion to $1.65 billion.

Now, according to a new report from The Wall Street Journal, were getting a glimpse into one of the contributing factors to Samsungs mobile troubles. For starters, Samsung was extremely confident in the sales potential of the Galaxy S5 flagship that was introduced in April, and produced 20 percent more of the device than its predecessor. However, when the Galaxy S5 was released, reviewers [and customers] werent impressed with the hardware updates provided compared to its Galaxy S4 predecessor.

As a result, Samsung ended up with a lot of excess product sitting in warehouses, and had to step up its marketing efforts and offer up extremely attractive pricing to customers] to make a dent in its inventory. And while Samsung saw an uptick in sales [compared to the Galaxy S4] in the United States (its largest market) it saw a 50 percent decrease in China (its second largest market) and decreases in all other major markets.

Samsung Galaxy S5

So far, Samsung has sold roughly 40 percent fewer Galaxy S5 smartphones worldwide than it originally projected.

But Samsung already has a plan in motion to fundamentally reform its mobile operations. The company will reduce the number of smartphones that it introduces in 2015 by 30 percent. By our count, Samsung has introduced at least 14 new smartphone models so far this year, so even a 30 percent reduction would still leave a pretty expansive smartphone lineup for the company.

Samsung also plans to reduce costs by increasing the number of components shared across mid- to low-end models, so that we can further leverage economies of scale. And the company has already made efforts to introduce more premium materials in its smartphones (as witnessed by the Galaxy Alpha, Galaxy Note 4, and Galaxy A3/A5).

On the personnel front, the WSJ reports that Samsungs mobile chief, JK Shin, may be getting the boot in favor of current TV and home appliance head BK Yoon. But according to papers sources, the decision isnt final so it may still be a while before we know the outcome of Samsungs internal executive shuffling.

Source: DailyTech

Tags: Galaxy S4, Galaxy S5, Samsung, smartphones

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
The NVIDIA GeForce GTX 1180 will be Turing-based with a 12nm FinFET die shrink
 
This only works on posts made by profiles that are public
 
 
The device will be standalone and based on a Qualcomm chipset
 
Apple plans on offering a cheaper smart speaker that will be priced at $199
 
Chrome will adopt a new approach to indicating site security
 
Data shows they are leading smartphone sale worldwide
 
Is this an error or it is really happening?
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
  12345
6789101112
13141516171819
20212223242526
2728293031  




Poll

Do you use microSD card with your phone?
or leave your own version in comments (10)