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Analysts: Galaxy S8 may be selling slower than the S7 before it

Analysts: Galaxy S8 may be selling slower than the S7 before it

Samsung's Galaxy S8 landed with the most radical design overhaul in the history of the Galaxy S series, a top-shelf camera, and numerous other enticements, but this may have not been enough for users to switch their current handsets. A new report cites Korean analysts from The Bell, who claim that the S8 actually sells slower than the Galaxy S7 before it.

The numbers they've come up with, however, are a bit conflicting. In the first three weeks after launch, Samsung reported that it has shipped 10 million of the new handsets, while the Bell's numbers are 9.8 million for the S8 in the first two months after the release, and then they are compared to the 12 million that the S7 has moved for the same period. Thus, the analysts' claim, the S8 sells 20% less than the S7, but it doesn't seem like an apples-to-apples comparison. The discrepancy might be stemming from the fact that Samsung's ten million figure was for both the S8 and S8+, and it counted the units shipped to carriers and retailers, not just the ones sold to end users. 

When The Bell's analysts isolated the S8 and the S7 sales for the first two months, they came up with the weakening sales numbers for the S8 in a leap of faith: "Since the 10 million shipment, Samsung is not revealing sales figures possibly due to slowing sales. We assume the S8 is selling less than the S7." While assuming isn't a very scientific method, a further tangential evidence comes in the form of decreased parts sales for the S8 from certain suppliers, adds the report. 

The analysts attribute their own conclusion regarding the slowdown in Galaxy S8 shipments to market saturation in the high-end phone segment, as well as the heavy competition from the Chinese brands. A Samsung official declined to comment on exact numbers, save for the ballpark "we estimate S8’s sales volume to be similar to that of S7 for now," reminding again that the S7 went on sale globally almost immediately, while the S8 was only available in three major markets in the beginning.

source: The Investor

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