Analysts reveal secret behind Galaxy S7 sales success, Galaxy Note 6 could come a month or two before iPhone 7


The Samsung Galaxy S7 is a sales success. Early estimates show that it has sold 9 million units within the first month of availability, nearly triple the amount of sales that the Galaxy S6 amassed for the same period last year.

There are a few factors contributing that success: the glowing reviews from all over the web (including our in-depth analysis of the Galaxy S7 and S7 Edge), but also the fact that Samsung has managed to bring its new S7 to market nearly a month early than last year and price it more affordably. Analysts say that the new S7 is on average some 8% cheaper than the last year model.

Another key consideration is that Samsung has now correctly judged demand for the larger S7 Edge model, while last year, the demand for the fancy S6 Edge was larger than the number of curved displays Samsung was ready to manufacture.

Samsung seems to have also nailed the perfect timing for this year's Galaxy S7 launch: a period when Chinese phone makers have not yet released their competitors (which are usually very hard to beat in terms of price) and Apple is yet so far off from releasing the fall-bound iPhone 7.

The success of the Galaxy S7 has almost instantly reflected on the price of Samsung shares that is now growing, while within Samsung itself operating profits are surging.

Samsung itself has not commented on the Galaxy S7 sales apart from this one-liner from late March: “the S7 sales are extremely encouraging,” Executive VP Rhee In Jong said on March 21st.

What's particularly interesting is that Samsung might have quickly learned a lesson from this success. Analysts now say that the company will try to release its phablet, the Galaxy Note 6, a month or two before the iPhone 7 to monetize the opportunity.

source: Bloomberg

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63 Comments

63. Firedrops

Posts: 254; Member since: Sep 06, 2011

It's also all the blue balls from us holding off upgrading into an 810 last year, even if 2 years were up and the screen was barely working on our old babies.

39. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

In what country is the S7 cheaper? Because it went up here in the USA. Verizon has always sold the S for $599. This year for the first time its $649.

36. XaErO

Posts: 353; Member since: Sep 25, 2012

I don't think that S7/Edge are cheaper .. just a tad but not much (at least in my country) .. Also, the S7 edge sales are probably higher not just of the "edge" but also because of the popular screen size (5.5") now a days and on top of that the bigger battery .. If S7 had the 5.5" screen; it would have been sold more than S7 edge ..

34. cdm283813

Posts: 424; Member since: Jan 10, 2015

Got a $200 bestbuy giftcard when trading in a Droid Mini that I paid $8 for back in January. Walked away with a S7 this Sunday. And the phone has been selling like crazy. No one has the S7 Edge in stock at any BestBuy's, Walmart's or Target's in my area. Plus I had to drive to 2 BestBuy's to get the regular S7.

32. mothra108

Posts: 6; Member since: Apr 03, 2016

I think there are several factors responsible for the sales success of the S7 & S7 Edge. It is just a superb phone, solid build quality and good features and performance. Good ergonomics, it fits and feels like a smaller phone than it really is and pretty much packs as much screen real estate into your hand as it can comfortably handle. The carriers, the major ones here in the US, have made it affordable to the masses by offering interest-free installment plans on the purchase price of the phone, currently about $800 for the S7 Edge in the US. I just got the S7 Edge and couldn't be happier, as a user of this phone. Not that it's perfect, but at least I don't think that I've been ripped off by buying an overhyped piece of junk. One of the things that I like about this phone is that Samsung seems to have listened to the complaints and concerns of users of its others phones and has tried to improve their product. I appreciate this as a customer, who has invested a good amount of money in one of their products.

27. gigicoaste

Posts: 468; Member since: Feb 21, 2016

ehm..I think that actually they are selling better because they put back the sd card, a better battery and waterproof. If you take this out and compare with s6 you will see that are not much differences.. and I bet that sells wouldn't look so pretty.

19. antmiu2

Posts: 553; Member since: Jun 19, 2011

Note 6 will have the same specs as the S7 except 6 inch screen 4000+ mAh battery 16 Large Pixel camera USB type better pen /functions

23. sssbeesss

Posts: 20; Member since: May 04, 2014

I hope so..

28. Clars123

Posts: 1082; Member since: Mar 16, 2015

I dont see them making a new sensor when they have a winner with this one..they'll probably just improve he image proccesing for the camera and maybe add type C at the expense of making a new Gear VR

50. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Nah. The Note 6 will maybe go 5.9" tops if it changes at all. Will still be 1440p, It will likely also be only 32GB with a 200GB sdcard tray, 4GB RAM, 4000Mah battery, same 12MP camera with larger pixels and faster focus, but the things that were mess-up on the S7 camera, wont be an issue when the Note comes, an improved S-Pen with 2048 levels of pressure, improved UI. I would like to see the Note also have a dual edge screen like the S7 and get those gimmicky useful edge screen features, that no other phone has.

54. Fellwalker

Posts: 548; Member since: Apr 04, 2014

Please no edge shape . Flat screen. Or additional edge like on the original note edge.. The edgey stuff on the 7 edge does NOT need the bent screen. The edges just mean the screen is effectively narrower, and that is a big mistake. It makes web pages effectively smaller, for example.

15. yoosufmuneer

Posts: 1518; Member since: Feb 14, 2015

Regardless of this, PA gave 9.3 for the S6 and 9 for the S7. UNFAIR

22. legiloca

Posts: 1676; Member since: Nov 11, 2014

Does the .3 really mattered to you?

33. yoosufmuneer

Posts: 1518; Member since: Feb 14, 2015

Yeah. S7 is better than S6 in every single way(except for the speaker and headphone playback). Shows how PA's metering system is broken. S7 fixed all the flaws in the S6.

61. epdm2be

Posts: 836; Member since: Apr 20, 2012

apparantly not. You mention the speaker and headphone playback yourself. Why does Samsung ALWAYS f**k up! Then can't improve ONE thing while removing or ruining another!

49. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

YEAH.Compare the iPhone 6S has been stated on ALL BLOG sites to take worse pictures vs the iPhone 6. The 6S has no new feature other than force touch which has useless and terrible capabilities right now. Yet it got a higher score than the S7 which actually got a design change, water-proofing, better fast focusing camera, bigger battery, sdcard, and more. Yet the score was lower than the previous model? That's complete and uttered BS. Come on man, just be fair.

14. torr310

Posts: 1736; Member since: Oct 27, 2011

I also feel the Buy One Get One Free and free VR or S2 Watch in the United States are the factors.

13. Marduch

Posts: 81; Member since: Feb 04, 2015

Bring NOTE6 back to EUROPE! Clear??!!

5. quintessential

Posts: 86; Member since: Mar 11, 2015

Samsung also said the same thing about the Galaxy S6 on the 'exceptionally strong' sales? I remember they also boasted on so-called '10 Million' shipped within the first month last year. But when it came to the fiscal results, the sales profits didnt show, while the mid and low range devices from Samsung were holding them up instead. It seems strange that if the S7 and S7 edge are indeed selling like hotcakes, why have they dropped the price so much within just one month if the demand was that hot? The S7 is now selling at $149 on basic contract while the S7 edge is at $249 on the same plan too. That's nearly $200 off the usual launch price on a 2-yr contract.

7. dimas

Posts: 3461; Member since: Jul 22, 2014

Somehow they have to adapt to chinese competitors. Just look at what meizu and vivo are offering. You lose China and India sales and their q3 sales will suffer again.

8. quintessential

Posts: 86; Member since: Mar 11, 2015

Actually, the $149 and $249 on contract price over here that they are selling for the S7 and S7 edge is the kind of pricing thats usually accorded to mid-range phones. Now Samsung is selling these high-end S7 models at mid-range price on contract. No wonder they are beginning to sell better in sales. But I do not think this will translate to tidy profits. Seems like a desperate move on Samsung's part if you ask me.

60. epdm2be

Posts: 836; Member since: Apr 20, 2012

hmmm you guys talking about mid-range and quoting "mid-range" prices while all I see is uber expensive. These things cost 700 (S7) or 800 euros where I live! Sure, it's tax invested Europe but I can buy a whole fricking Core i7 PC for THAT!

10. TerryTerius unregistered

Has the actual cost of the device drop by $150 or $200?

11. quintessential

Posts: 86; Member since: Mar 11, 2015

The S7 was going for $299 with a two year plan, while the S7 edge was $449 with plan. Both models dropped by $100 after the first week of sale. This week the price dropped further to $149 and $249. This is a $150 price cut for the S7 and a $200 cut for the S7 edge on contract. Over here, the only alternative models selling at this price are either the much older high-end models, or the new mid range models.

16. TerryTerius unregistered

I'm not asking about the deposit, I'm asking about the price of the device itself.

24. KeyserSoze

Posts: 387; Member since: Oct 06, 2014

LOL! Can't believe there still are stupid people out there thinking the deposit/contract price of a phone is its real/full price. These morons probably think a $2000 down payment is the actual price of a car when they go buy one.

46. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

My sentiments exactly!!!!!!

29. quintessential

Posts: 86; Member since: Mar 11, 2015

Of course .... It has dropped too. The actual retail price for the S7 was $998 and the S7 Edge was $1128. Now, the S7 is going for $798, while the S7 Edge is now at $898. That's $200-$230 off the actual price here.

31. John-Knotts

Posts: 380; Member since: Feb 28, 2015

Really? Because I bought my S7 Edge for 770 on the day it became available.

37. quintessential

Posts: 86; Member since: Mar 11, 2015

Please do not assume everyone comes from the same goon country as you. Lmao.

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