Samsung lowers its smartphone sales expectations for 2014
Wisely, Samsung is lowering its expectations on how many Samsung Galaxy S5 units it will sell next year. Sounds like Samsung's bean counters had fallen into the trap of extrapolating the success of the Samsung Galaxy S II and Samsung Galaxy S III to determine Samsung Galaxy S4 sales. But nothing lasts forever and Samsung did not count on the early success of the HTC One, which earlier this year gave Samsung a run for its money in the high-end Android smartphone niche. By the time HTC One sales cooled off, the Galaxy S4 had lost its momentum.
Samsung says that it will focus on mid-range handsets and tablets in 2014. Meanwhile, the company expects to sell 300 million smartphones this year. With the downward revision, 2014 should show a 10% increase in sales of its intelligent phones in 2014. That would be the slowest year-over-year growth in smartphone sales for Samsung ever since the smartphone sales boom started.
And while this could be the start of a period of slowing growth for Samsung, it just could be a case of Sammy following in the footsteps of its top rival. Apple has made a name for itself on Wall Street by under-promising and over-delivering. And after seeing how this has worked for Apple over the years, Samsung might have already deployed this strategy by cutting its expectations for the Galaxy S5 and its total smartphone sales for next year.
source: ETNews (translated) via AndroidGuys
1. Kishin (Posts: 694; Member since: 30 May 2013)
Yes we only need 2 devices a year the Samsung series and the Galaxy Note series
2. Finalflash (Posts: 2041; Member since: 23 Jul 2013)
Time to finally start paying attention to design and not just flooding the market.
20. mr.techdude (Posts: 566; Member since: 19 Nov 2012)
I know, finally they can make their stupid ads heads smaller again.
3. zekes (Posts: 220; Member since: 14 Aug 2012)
This is what happens when you have a big ego it gets crushed by reality
6. PBXtech (Posts: 997; Member since: 21 Oct 2013)
Every OEM would love to sell 330 million handsets a year.
10. zekes (Posts: 220; Member since: 14 Aug 2012)
No I'm pretty sure their focused on quality not quantity
17. Pancholo (Posts: 380; Member since: 27 Feb 2012)
I'm pretty sure they're* not interested in the money either.
4. jellmoo (Posts: 771; Member since: 31 Oct 2011)
I think the reality is that we are starting to see diminishing returns on new handsets being produced. When the model released in the last 2 years is still perfectly up to the task, selling the new one is getting more and more difficult.
5. Sauce (unregistered)
Couldn't have said it better. I totally agree. Nice post!
24. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
There is a reason buyers look for future-proofing in the specs of a handset they are considering to buy. Slower sales gain is the downside for the manufacturer. Although 330 million unit sales is nothing to complain about.
13. CreeDiddy (Posts: 471; Member since: 04 Nov 2011)
There is truth to that, as many people upgrade every two years.
15. Killertech2099 (Posts: 145; Member since: 28 Sep 2013)
Exactly i still have my galaxy s3 and its still smooth runs like butter, if it ain't broke don't fix it.Selling new phones is getting harder cause the popular ones will still sell out the new products. Sammy should just surprise us with two killer phones then a dozen. But ill be upgrading to the S5 when it comes out. Most people don't have unlocked phones most people are under contracts.
28. p51d007 (Posts: 106; Member since: 24 Nov 2013)
Exactly! It use to be that every 9 - 12 months, a new device would have a bunch of new features. Now, the only "new" things are faster processors, bigger screens, and (shudder) more megapixels for the camera. My 2 year old Gnote1, running JB 4.1.2 still holds up quite well for my needs.
It's almost to the point of saying, but how much time am I saving by being able to open an app .495 seconds faster than I did before?
7. PBXtech (Posts: 997; Member since: 21 Oct 2013)
If they proceed with the Design 3.0 phase and it's up to expectations, I don't see SS having a hard time selling target amount of phones.
12. AFnerdTP (Posts: 86; Member since: 15 May 2012)
exactly.. i can't imagine investors' looking at this and saying, "what the f samsung??"
11. AFnerdTP (Posts: 86; Member since: 15 May 2012)
when you're selling this many smartphones, i feel that it's Samsung being more realistic about its expectations..
i mean.. when you reach numbers like 300 million a year, how many more years can you expect to have similar growth? it's not like everyone buys phones every year.
31. donfem (Posts: 568; Member since: 30 Mar 2011)
Exactly. Unfortunately, a few knuckleheads will interpret this to mean failure. Samsung will still do what it does best: Satisfy every cadre of clientele
14. CreeDiddy (Posts: 471; Member since: 04 Nov 2011)
Between S2, S3, S4, Note2, and Note3 sales, I would say that only makes up just about 150 million of their 300+ phones sold. The rest are low budget Android and featured phones.
18. darkkjedii (Posts: 14132; Member since: 05 Feb 2011)
I think Samsungs making a mistake with their over saturation of the market with all these galaxy phones. Overall they're releasing too many phines too soon, causing people to wait due to their device being obsolete within a few months. Pump your breaks Samsung.
21. Topcat488 (Posts: 1182; Member since: 29 Sep 2012)
Apple has made a name for itself on Wall Street by under-promising and over-delivering.
What ever Apple does Samsung "Copies"... Even if it's lowering expectation of a product. "Sigh"
22. Loubielou (Posts: 330; Member since: 11 Jul 2012)
|Samsung have got to cut down on the models the release an think more about the Quality of phones they release,Samsung have also got to stop helping Apple with it products they want,as then they know they don"t after produce another product on the own Smartphones,as they have just had to produce a new 64gb processor for the S5 because they made one for the iPhone 5s
25. nctx77 (Posts: 846; Member since: 03 Sep 2013)
What are you 5? You don't understand business at all. First, Samsung does not design Apple's chips. They manufacture apple's chips, and in doing so, make a lot of money. They both are fighting in court over patents and copying products, but that's only one sector of their business. You will be surprised at how many companies fight with each other in one way and are business partners in another way.
26. cripton805 (Posts: 1127; Member since: 18 Mar 2012)
I can't believe nobody took into consideration the fact that carriers want everyone to start paying full price for phones. Also, the fact that REALLY low end phones are slowly dying out. The new low/mid end phones like the Nexus 4, Nexus 5, Moto G, Lumia 525, Moto X, etc. are truely good low/mid end phones that function extremely well. It really doesn't make sense to buy an $800 phone anymore unless you want to dump money. Carrier locks are annoying too. I'm tired of having to use carrier specific phones. Within the next two years I see the mid/low end marked really start picking up now. This trend started in 2013 and its picking up strong.
27. nctx77 (Posts: 846; Member since: 03 Sep 2013)
I think what is happening to Samsung is increased competition from other android handsets. The reason I say this is, because it has gotten much harder to differentiate their product. I mean all Android devices have big screen, the same processors and use the same App Store. The ecosystem is all the same. The only difference is the skin that they put over Android. The one thing that's keeping Sammy afloat is the removable battery and expanded memory slot, but not everyone that has a galaxy even care about that. I'm not bashing Samsung though. The same thing happened to Apple. Apples product is still great, but nothing unique anymore.
29. Andrewtst (Posts: 413; Member since: 25 Jan 2009)
Samsung - don't release too many version phone.
2 is enough for high end - S5 and Note 4.
1 is enough for middle range - ACE 4.
1 mini version is enough but remember pack with same high end spec except only change to smaller screen size - S5 mini.
30. exxperian (Posts: 20; Member since: 07 Dec 2013)
they know that Apple will release bigger iPhone next year galaxy will be no where used in out galaxy go Apple go
33. aydell2123 (Posts: 16; Member since: 28 Aug 2013)
I bet whoever wrote this article feels stupid...samsung just sold 88 million phones in quarter 1 2014..highest ever...just take a seat and watch..htc, sony, apple will never beat sammy..
34. superduper (Posts: 151; Member since: 20 Oct 2013)
Samesung will announce their third consecutive quarterly fall in profits in the coming weeks. Someday you will realize that selling the most is not always what matters. Just ask HP.