Beleaguered Samsung has sold 40% fewer Galaxy S5 units than expected

“Samsung Electronics Co. is considering a major leadership shake-up, according to people familiar with the matter, part of an attempt to revive its fortunes after a difficult year that has hurt its profitability, market share and stock price,” Jonathan Cheng and Sam Schechner report for The Wall Street Journal.

“The internal restructuring, the details of which could still change amid an ongoing annual review, would be a sign of Samsung’s attempts to find its footing after a brutal year in which third-quarter profit fell 60% amid market-share declines in smartphones around the world,” Cheng and Schechner report. “The mobile division, under co-chief executive and mobile head J.K. Shin, didn’t seriously question bullish projections for orders of its flagship smartphone, the Galaxy S5, which went on sale globally in April, according to a person familiar with the matter.”

“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, according to the person. That led to merchandise piling up in warehouses, forcing Samsung to increase marketing expenditures to unload the devices,” Cheng and Schechner report. “In all, Samsung sold about 40% fewer Galaxy S5 smartphones than expected.”

Read more in the full article here.

MacDailyNews Take: Aww, that’s too bad. 🙂

An iPhone with a larger screen option will hurt Samsung immeasurably more than myriad, unending traipses through the legal morass.MacDailyNews, May 2, 2014

[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]

23 Comments

  1. Can you imagine the outcry from the tech “press” if Apple sold even 5% fewer gadgets than estimated? When Apple exceeds its guidance, the company is still often punished in the press and the markets. Samsung is selling FORTY percent fewer Galaxy S5 units than expected and I bet you’ll barely hear it mentioned. I guess the press has moved on to a “Xiaomi is going to eat Apple’s lunch” theme…

    1. The story above is wrong. Samsung SHIPPED 40% fewer Galaxy S5 phones than expected. They likely have at least 10% stuck in the channel and another 10% in their warehouse.

  2. And those are shipped units.

    Also, this is why the stories by the WS shysters about Samsung winning apple’s business. Baloney of course. Expect abysmal numbers for this current quarter. Expect more Samsung winning apple business. All baloney of course.

    1. Craigslist was broken, at least on Sunday. Maybe from all the Samsung phones being posted for sale. 😛

      So 40% fewer than anticipated translates to 85% of last years numbers or sales are down by 15%.

      They got screwed by the phone companies, big time.

      Certainly someone doesn’t get to keep their job.

    1. No need. Tim Cook pulled the reins on Jobs’ legal thermonuclear war a couple of years ago, finishing up existing cases and not really pursuing new claims. Instead, Cook has focused Apple on jumping so far ahead with hardware innovations coupled with tightly integrated software features that no company which doesn’t produce the entire process can hope to keep up.

      This is Cook’s thermonuclear war: Cook is moving Apple at warp speed, while all the Android makers are still flying 747s. In 5 years, we’ll have to categorize Apple devices as something above smartphones, because nothing else will be able to survive an iPhone’s shadow.

  3. ShameSung screwed themselves more than anyone did to them. Apple simply out-innovated everyone else on the planet with designs and features that cannot be easily copied. ShameSung simply can’t keep up with the copying and simply produced the Galaxy2 with cosmetic changes and upgraded hardware with no new functions year after year and consumers are wise to buy from the cheaper makers of Android phones.

    ShameSung has already squeezed the last profit out of the Galaxy line but management was optimistic of increased sales which is simply a case of fooling themselves but everyone else. It remains to be seen what a management shakeup will do – maybe new directions in copying from their low cost rivals? Launch xiao mi lookalikes?

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