Samsung reduces Galaxy S4 July order by 50% to 6.5 million, from 12.2M in May. Plans early SGS3 retirement
During past week the evidence started emerging that analyst and Samsung’s own forecasts about Galaxy S4 sales were too optimistic.
Today we get even more indications that Samsung flagship’s sales are not going as well as expected. According to ETNews, Samsung’s Mobile Division has now reduced the July components order to 6.5 million GS4 units, down from 10 million in April and 12.2 million in May.
Just weeks before, Samsung was very confident in Galaxy S4 prospects. They have managed to sell 4 million units on the opening weekend, and then proceeded to ship a total 10 million in 26 days from launch.
But as the pre-existing initial demand leveled off, sales began to slow at an unexpected rate, and the inventories started piling up. Now Samsung is responding by reducing overall Galaxy S4 monthly orders by 10-15%.
They also decided on sooner than expected retirement of Samsung Galaxy S3. Which may be a smart move, since for the average person, Galaxy S3 design and performance is not so much different from S4, and the former flagship may be cannibalizing some serious SGS4 sales.
If we put those reduced Samsung flagship sales numbers into perspective – they are not bad. Any other Android OEM would kill to have them. But it’s Samsung we are talking about here. And for them these numbers spell the first signs of trouble. It means that Sammy’s heady days of high end Android flagship growth, and huge profits they generated, are coming to an end. Either because the market is already saturated by all the iPhones and Galaxy S4s it can take. Or because competitors like HTC One and Xperia Z are starting to make an impact.
It would be interesting to see how Samsung will respond to these challenges.