High demand for Galaxy Note 7 puts pressure on supply chain, Samsung boosts production

High demand for Galaxy Note 7 puts pressure on supply chain, Samsung boosts production
This isn't the first time a Samsung flagship is in high demand, so one would think the South Korean company took all precautions to fulfill all pre-orders and have the necessary stock needed for launch.

However, it doesn't seem like Samsung has been able to cope with the strong demand for the Galaxy Note 7, which is the main reason the phablet has been slightly delayed in several European markets.

According to a new report, the strong initial sales of the Galaxy Note 7 are putting the pressure on the supply chain, and seems to have caused stock constraints all over the globe. Although this could mean a solid financial quarter for Samsung, it could very well mean disaster if the South Korean company does not manage to quickly ramp up production of its flagship to meed the strong demand.

A Samsung official confirmed that due to the unexpected high number of pre-orders, the Galaxy Note 7's release in some markets needed to be adjusted. The official also said that his company has already boosted production at the secret locations where the Galaxy Note 7 is manufactured, so the supply shortage should be only a temporary problem for Samsung.

The history seems to be in Samsung's favor since the company almost never confronted with supply shortages in the long term.

In the same piece of news, analysts predict that Samsung could sell up to 15 million Galaxy Note 7 units by the end of the year, which is quite a lot considering the Galaxy Note 5 only sold around 9 million units in 2015.

The Galaxy Note 7 has been met with favorable reviews from the media, which determined many analysts to revise their forecasts over the number of units sold during 2016. That, and the fact that Samsung said it won't have any issues with the curved display production.

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25 Comments

1. rkoforever90

Posts: 434; Member since: Dec 03, 2011

samsung is on a role.

13. dimas

Posts: 3343; Member since: Jul 22, 2014

Uhm *roll. But I dig your enthusiasm.

19. darkkjedii

Posts: 30964; Member since: Feb 05, 2011

Trojan horse is gonna get you for correcting him. Did you know, he's also an actual horse?

2. Yoloswagins

Posts: 25; Member since: Dec 18, 2014

And in two months' team we'll hear that sales are underwhelming. This phone is overpriced; yet, nothing useful had been added. Ahy overpay when you can get s7 for much cheaper? The new note is just an s7 with an spen.

3. -Shadow-

Posts: 95; Member since: Mar 26, 2013

That spen is pretty nice to have, to be honest.

9. Yoloswagins

Posts: 25; Member since: Dec 18, 2014

I've been using note series for the last 4 years and I barely use the s-pen. It's nice to have and sometimes it can be useful, but that's about it.

11. iushnt

Posts: 3086; Member since: Feb 06, 2013

So you mean you represent every note users accurately?

16. Finalflash

Posts: 4063; Member since: Jul 23, 2013

It has very nice uses, they just aren't for you. For example, I am currently designing a UI for an app I am making. Doing it on paper and pencil is horribly difficult especially on the go like when I am on the bus or in a car. This will likely be a good phone for that and I am very much considering buying the Note 7 this year. Just going to wait on the Nexus devices to see if they have the proper size I am looking for and if not, then Note 7 it is.

5. ibend

Posts: 6747; Member since: Sep 30, 2014

its only slightly more expensive than S7edge.. and you get S-pen, GraceUI, iris scanner, tons of extra feature, HDR stream, and some other stuff... fair enough

14. dimas

Posts: 3343; Member since: Jul 22, 2014

S7 edge didn't have that iris scanner and QHD to FHD to HD setting for better battery and note 7 will cost the same as the s7 edge launching price in my country. Now I'm waiting what they'll add to the smaller galaxy s8 next year.

20. bobby84

Posts: 595; Member since: May 13, 2016

64gb too

6. trojan_horse

Posts: 5868; Member since: May 06, 2016

S7edge doesn't have a HDR display. The S Pen alone adds a ton of additional features!

8. Yoloswagins

Posts: 25; Member since: Dec 18, 2014

Hdr display? Sounds like another marketing gimmick tbh.

10. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

I haven't seen it yet but, a lot of tech enthusiasts on youtube doesn't dismiss it as a 'gimmick', and they are more excited by it compared to when 4K was the buzz.

12. iushnt

Posts: 3086; Member since: Feb 06, 2013

You should do some homework before following the herd..

7. Yoloswagins

Posts: 25; Member since: Dec 18, 2014

*time

15. dimas

Posts: 3343; Member since: Jul 22, 2014

S7 edge launching price in my country was $860 tax included. Same price for the note 7 and you get iris scanner, display resolution control, more refined camera software and more updated vulkan graphics for games. I can ignore s-pen but note 7 is a good buy for me unless lg v20 will be awesome on september.

17. janis

Posts: 397; Member since: Mar 10, 2014

at least samsung fanboys dont sleep with tents next to store before opening, that must say a lot about apple fans.

18. ikgniw

Posts: 5; Member since: Aug 03, 2016

I wonder why no one ever mentions extra 32GB though? Isn't it great even if you aren't satisfied with all of those new features and S-pen? S7E 64GB currently has the same price as Note 7 in my country.

4. manojmcn

Posts: 633; Member since: Jul 16, 2015

2015 - Snapdragon 810 failed all except Samsung. 2016 - designs failed all except Samsung. More signs that even Apple may face the design question. 2017 - Game open. What can S8 do? Glass n metal will stay. 4k screen, force touch & dual lens enough?

21. mi7chy

Posts: 53; Member since: Apr 18, 2016

But it doesn't have optimzed 16GB storage of iPhone 6S Plus.

24. iushnt

Posts: 3086; Member since: Feb 06, 2013

Do you like muscles car (not optimized) our sports car (optimized). Note 7 represents both.

25. iushnt

Posts: 3086; Member since: Feb 06, 2013

Or sports*

22. HumbleJ06

Posts: 97; Member since: Aug 10, 2015

Hopefully the Note 7 is a good phone. The wife is getting the Note 7 after using the Note 3 for 3 years. Samsung phones are usually pretty well made and dependable. Pretty sure she will be happy with her purchase.

23. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

I'm gonna have to cancel my Note 7 order here in Canada. Turns out this time, the Note 7 will be coming with the lazily unoptimized SD820 here in Canada, instead of Exynos like the S7/S7 Edge. Oh well, I'll just order the international version at a later time off eBay/Amazon

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