Analyst: Samsung Galaxy S5 sales may disappoint in the first three months

Analyst: Samsung Galaxy S5 sales may disappoint in the first three months
Samsung’s Galaxy S4 was a major hit last year. The South Korean company sold 20 million units worldwide in the first three months after the handset’s release. Will the new Galaxy S5 match that performance? According to IM Investment & Securities analyst Lee Min-hee, who was quoted by Reuters, S5 sales may “fall short” of the 20 million Galaxy S4s sold in the first three months.

One of the reasons for this could be the fact that all three South Korean mobile carriers have been banned from launching new smartphones for periods ranging from March to May. For example, KT (the country's largest carrier) will not be able to add new customers, and neither sell handsets to existing ones from April 5 to May 19. Thus, when Samsung releases the S5 on April 11, it won’t be able to properly sell it in its home country. Of course, South Korea only accounts for a rather small portion of Samsung’s global smartphone sales. Even so, Lee Min-hee believes that the Korean carriers ban plus “a lack of sweeping hardware improvements” will likely affect initial Galaxy S5 sales.

We must mention that more than 70% of South Korea’s population (50 million) owns at least one smartphone. The country’s mobile carriers are being banned from introducing new devices because they broke local regulations by subsidizing more than $250 from the cost of their phones.

Earlier today, Samsung announced that customers buying the Galaxy S5 would receive $600 worth of mobile content and subscriptions. It remains to be seen if that's going to helps sales.

source: Reuters

Related phones

Galaxy S5
  • Display 5.1" 1080 x 1920 pixels
  • Camera 16 MP / 2.1 MP front
  • Processor Qualcomm Snapdragon 801, Quad-core, 2500 MHz
  • Storage 32 GB + microSDXC
  • Battery 2800 mAh(21h 3G talk time)

FEATURED VIDEO

45 Comments

1. Kishin

Posts: 706; Member since: May 30, 2013

I know...

5. Ashoaib

Posts: 3298; Member since: Nov 15, 2013

How? better answer will be with reasons... like, much hyped phone but not able to match the anticipation it built... design of the phone is not able to wow the customers, thats the major drawback

7. Kishin

Posts: 706; Member since: May 30, 2013

The market is flooded with devises that another reason...

13. Tizen007

Posts: 575; Member since: Jan 07, 2014

This is a good thing. It will teach them a lesson to make their NOTE 4 spectacular. That's what I notice about South Korean companies: One of their major products fail and the successor is spectacular. Look at Sammy's Omnia and it's successor Galaxy S.

40. skyline88

Posts: 698; Member since: Jul 15, 2013

i got no idea how Omnia (WIndows) has got relation with Galaxy S (Android).

42. RORYREVOLUTION

Posts: 3131; Member since: Jan 12, 2010

Simply put, Samsung realized that their windows devices weren't selling nor making them as popular as they wanted to be. As soon as Samsung came into the Android field and released the Samsung Galaxy S, their sales and popularity have sky rocket.

14. akki20892

Posts: 3902; Member since: Feb 04, 2013

Not sure is it first three months or last three months. It's gonna hurt a little bit but not much, will sell on their galaxy name.

43. hk0805

Posts: 11; Member since: Jun 28, 2012

I see a Blackberry/Nokia/Apple (for some reason) saga happening all over with Samsung. They have there a$$ adamant on the designs of their phones which each look like long lost twin brothers. The hesitation to change (software or design or hardware) which the above all companies did will be all over repeated on a grander scale by Samsung. Go Sammy! I wanna watch how you come out of your own dug pit!

2. jellmoo

Posts: 2626; Member since: Oct 31, 2011

Honestly, the flagship market is heavily saturated, and we're a product update lifecycle as opposed to a revolutionary one from all manufacturers. I'm expecting slow sales from all involved.

10. Kishin

Posts: 706; Member since: May 30, 2013

Samsung is well known this would not happen if they could get consumers wowed in design with their might commercials. As more costumers buy samsung they will only think about samsung, as long as it well known and nice designs there would be no market slow down within the next 2 to 3 years from now..But its going down since there some beautiful phones from all this different manufactures..

3. androiphone20

Posts: 1654; Member since: Jul 10, 2013

"Anaylst," I bet he'll sink into a serotonin-deficit that's hard to climb out of when he watches the numbers skyrocket beyond last year's 20 million.

4. maherk

Posts: 6960; Member since: Feb 10, 2012

Is he an analyst or a psychic? And didn't we read the same news about the S4, S3, iPhone 5, 5s, Note 2 and Note 3? And didn't also those analysts claim that the HTC one, Sony Z, LG optimus G, G2 and many others will be selling like hotcakes?

6. Ashoaib

Posts: 3298; Member since: Nov 15, 2013

Yea, they predicted all those things

8. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Lol yeah okay.

9. dome888

Posts: 86; Member since: Oct 10, 2012

told ya

16. PapaSmurf

Posts: 10457; Member since: May 14, 2012

There's a difference between prediction and reality. Please get that imprinted inside your head.

30. Commentator

Posts: 3723; Member since: Aug 16, 2011

He couldn't see it then. I recommend he gets it tattooed across his eyeballs, or at least wear specially-designed hearing aids that blare it at him 24/7.

11. Phonecall01 unregistered

Expectations were a little too high for this one. The smartphone market is getting a little saturated now. No mather how powerful you new shinny 4.5 - 6" multi-core super smartphone is, the specs will be surpassed in about 6 months...lol. With so many high standards most phones today have pretty high specs and features. Even WP is stepping up their game big time this year. It's all about finding that one device that works for you. After all the announcements and new 2014 releases, my fav phone is one that's quite a few months old.

22. Xenaz

Posts: 144; Member since: Apr 28, 2013

Yeah, "Analyst" always expect too much from big enterprises, they seems like expecting these big enterprises manage to keep double their sales and profit every year. While in the reality, when people talk about smartphone, most common people only know about Apple and Samsung, so eventually the smartphone market share will still being dominated by Samsung and Apple, and it is not gonna have any big changes in the near future unless a World War 3 suddenly started or something else like that.

32. rodneyej1

Posts: 3576; Member since: Jul 06, 2013

Actually, it seems that specs are elevating at a slower rate last year, and the new devices so far this year seem to show the same thing..

12. mokhtar

Posts: 405; Member since: Jan 06, 2014

is this a news ? we all know s5 is a s***ty phone no one will buy it except blind people

17. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Thanks for supporting my argument on how Samsung articles are always full of trolls and hate comments. Bookmarking for ammo.

27. rd_nest

Posts: 1656; Member since: Jun 06, 2010

Did Samsung stole your lunch or something? So much hate! Dude, it's a phone. Relax. Don't be a retard.

15. Mihajlo

Posts: 7; Member since: Jun 27, 2012

Ok, subscription plan is fail, People who really understands they know it. If Samsung drops price around 500 Dollars which won't happened they would sell a lot of devices. Otherwise S5 is going to be fail device of Samsung.

18. PapaSmurf

Posts: 10457; Member since: May 14, 2012

They did the same with the S4 and we all know how that ended with. A user mentioned a website published that Samsung sold over 65 million handsets as of March. That's 11 months since it was released. Do you still think it'll be a fail now?

45. Mihajlo

Posts: 7; Member since: Jun 27, 2012

Samsung has very good marketing and money too. Because of that it won't fail but it would not be as successful as other devices i think. Subscription plan is a failure.

19. JMartin22

Posts: 2372; Member since: Apr 30, 2013

The "analysis" pat themselves on the back and give their predictions the go-ahead just because a Galaxy phone can't sell 100 million units. These same people are a joke and it's done to stir up stock market interests.

20. Jason2k13

Posts: 1469; Member since: Mar 28, 2013

These analyst said the same thing about the s3 and s4, and look what happened lol

21. PapaSmurf

Posts: 10457; Member since: May 14, 2012

That's why I never pay attention to analysis. They're wrong 99% of the time.

26. Ant34

Posts: 193; Member since: Aug 10, 2013

I didn't here any analysts say that about the S3. The S4 missed Samsung's own estimate. The S5 will do fine but I doubt it will sell more than the S4. I own both the S3 and S4 and I'm planning on skipping the S5.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.