Samsung Galaxy S4 sales drop to 5 million in August. 14nm Exynos CPU in SGS5 is not happening
Samsung Galaxy S4 was the best selling smartphone model in the world this August, outselling even Apple’s iPhone 5, according to Hong-Kong’s Counterpoint Research. Though the analyst firm counts iPhone 5 16 and 32GB as two separate devices, and Apple’s smartphones came in as second and third in Counterpoint rankings. If we look at iPhone 5 as a single model, it probably outsold Samsung’s flagship by a wide margin.
Still, Counterpoint Research confirms persistent rumors that Galaxy S4 sales continue to fall short of the expectations. In August SGS4 sell through was 5 million units, down from the peak 7 million in June. The good news is, that August might have been the slowest month for Sammy’s flagship. With expected promotions and price cuts, Galaxy S4 Holiday Season sales should pick-up nicely, and may top previously record setting Galaxy S3 by 80%. A bit short of 100% growth expected earlier, but still very impressive.
Also, Samsung’s strategy of flooding the market with smartphone models at every price level and for every taste, is working. While the high end smartphone sales growth is stalling, mid-tier and low-end markets are still growing at a rapid 40-50% clip, and cheaper Galaxies like S3, S3/4 mini , etc; are compensating for lower than expected flagship sales.
Samsung’s line-up for the rest of this year is pretty much fixed now, and the numbers will mostly depend on the pricing actions during the Holiday Season. However, some rumors suggest that Samsung is taking action to re-ignite lucrative high-end sales early next year by moving the launch of its next Galaxy S5 flagship to January, from March. Which is quite possible given the current situation.
Another batch of rumors from South Korea says that Galaxy S5 wil come with new 14nm 64-bit Exynos CPU. Which doesn’t sound true at all. I don’t know about the 64-bit part one way or the other, but 14nm Exynos CPU in Galaxy S5 is not happening.
The source of this rumor claims that Samsung is skipping a step all other semiconductor foundries are taking, and instead of moving from 28nm process technologies to 20nm to 14nm, are going for 14nm directly. Which is possible, and even likely if the reports of Sammy nabbing Apple’s 2015 orders for 14nm A8 chip are true.
But mass production of 14nm CPUs is still months away, and whenever it arrives, it will be too late for Galaxy S5.