Overconfident Samsung missed expectations and sold four million less Galaxy S5 units than it did of the Galaxy S4

Overconfident Samsung missed expectations and sold four million less Galaxy S5 units than it did of the Galaxy S4
According to the Wall Street Journal article exposing Samsung's internal tensions, the company made the misstep of "bullish projections" for Galaxy S5 sales. Reportedly, Samsung made close to 20% more units than it manufactured of the Galaxy S4. It based its predictions on worldwide carrier surveys, asking them to predict demand but staying uninformed about unsold devices for whatever reason. Thus, unsold phones were collecting dust in warehouses, and Samsung had to spend more on promotion in a bid to get rid of stale stock. 

Even then, sales of the Galaxy S5 missed expectations by a whopping 40%. In the first three months post-launch, Samsung's flagship sold 12 million units - 4 million less than what the Galaxy S4 managed. Although sales in the USA picked up, the Chinese market was indifferent towards the Galaxy S5 and sales there went down by 50%.

The Samsung Galaxy S5 is a solid product, but it's not the lack of appreciation that did it in. Overconfident, Samsung spent too much for too little, and failed to assess the increasingly strong competition. In America, rumors of the grown-out iPhone 6 and iPhone 6 Plus had Apple loyals waiting for the inevitable September reveal. Over in Europe and parts of Asia, the gorgeous HTC One (M8) and the specs-heavy LG G3 made wonderful splashes with the combination of thoughtful design and powerful hardware. And in China, Xiaomi broke record after record while the Galaxy S5 and other Samsung offerings went by unnoticed.

Although the morale inside the company might be bent out of shape right now, Samsung Europe commented with a reasonable “The market is challenging but this is normal and healthy competition.", adding "We continue to lead many categories across consumer electronics.” Sun Tzu's age-old principle of “appear weak when you are strong, and strong when you are weak.” seems to be at play here. But Samsung knows it will take more effort before it perfects the art of war.


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)

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126 Comments

1. gagakiller

Posts: 176; Member since: Oct 08, 2014

That's a great news. Hopefully we'll here about their bankruptcy soon

6. BLUEBLASTER

Posts: 943; Member since: Feb 23, 2014

Lol Nice troll

128. PhoneLuver

Posts: 481; Member since: Jul 05, 2010

The cost of the S5 is really an inhibiting factor! Customers don't see the point of upgrading to an S5 when an S4 will do the trick! They need to innovate and not release a ton of similar phones!

129. mummra

Posts: 7; Member since: Oct 04, 2014

Like me, i am wating for s6 Or others. Avoided s5 because i have s4.

8. LetsBeHonest

Posts: 1548; Member since: Jun 04, 2013

Yeah keep on dreaming. They wont go down that easily.

11. Manti123

Posts: 207; Member since: Apr 10, 2014

Nokia had the same situation at the beginning 5 years ago. No one thought that Nokia would fall that way.

18. LetsBeHonest

Posts: 1548; Member since: Jun 04, 2013

I said "not that easily" not impossible.

63. willard12 unregistered

Nokia doesn't sell vacuums, microwaves, dishwashers, refigerators, forklifts, solar panels, DVD players, TVs, laptops, processors, displays, flash memory........

125. Theonote

Posts: 13; Member since: Sep 05, 2014

...cars, life insurance, construction/development, and theme parks.

126. Theonote

Posts: 13; Member since: Sep 05, 2014

also weapons, surveillance, aeronautics, optoelectronics, car batteries, gas turbines, engines, tourism, cameras, wearables, gaming.

99. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Samsung is South Korean. They made almost everything there including the nuclear power plant. So Samsung hater, you might need to carry your hate for generations. For me, I still use some of their better products. I don't understand the concept of brand loyalty. I mean we do still have to pay for our choices right?

131. deewinc

Posts: 455; Member since: Feb 21, 2013

You forgot to add Hospital too. These guys are everywhere o_O

121. kabhijeet.16

Posts: 894; Member since: Dec 05, 2012

Samsung doesnt make only Smartphones.. Samsung sells vacuums, microwaves, dishwashers, refrigerators, forklifts, solar panels, DVD players, TVs, laptops, processors, displays, flash memory etc.. They even have power plants... They make processors/displays etc for other companies as well... They can survive by just selling TVs... LOL

124. Bertelgeus

Posts: 126; Member since: Oct 15, 2014

The last *consecutive* earnings shocks were the *sum* of all those divisions' profits you mentioned. You are right - Samsung will survive, but the mobile division is done for good considering it has been far more than nullifying all other divisions' increases in profits. RIP Galaxy.

23. Mxyzptlk unregistered

Same thing was said about htc. Look at them now.

53. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Same thing was said about Apple, look at them now.

81. strudelz100

Posts: 646; Member since: Aug 20, 2014

Yeah super rich and monopolizing the premium segment.

117. T.Law

Posts: 423; Member since: May 10, 2014

"Premium" segment with bent and buggy products.

58. tedkord

Posts: 17454; Member since: Jun 17, 2009

Neither HTC not Nokia were so big as Samsung, nor as diversified. Samsung isn't going anywhere anytime soon, no matter how much your Apple loving mind wishes it.

71. dmn666

Posts: 244; Member since: Oct 19, 2011

Are you always this dumb? Nokia had a market cap over $220 billion,a peak that crapsung hasn't reached. Nokia was WAY bigger than what samsung is today. Go kill yourself now.

100. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Mxy. May I remind you that Samsung might as well be the only component supplier for you beloved iPhone supplying 80% of it. Can HTC do that? Apple fan has a oxymora relationship with Samsung.

24. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

http://www.roughlydrafted.com/2009/11/03/canalys-q3-2009-iphone-rim-taking-over-smartphone-market/ I remember Nokia fanboy says Nokia still king no.1 even though profit is sliding, until Nokia n9 era, Nokia barely exist where people shouting iPhone 4/4s and galaxy s2. Samsung fanboy still shouting no.1 king even though profit sliding, can't wait to see two years later.

17. tokuzumi

Posts: 1951; Member since: Aug 27, 2009

Samsung's mobile division is a drop in the bucket on the balance sheet. Samsung has their hand in everything.

52. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Yea but them leaving the mobile side would be a tragedy. Thankfully, they seem to be getting their heads out of their a** and have taken serious steps to make the next flagship unstoppable.

32. MrTzr unregistered

Why does this have 11 upvotes? Do you prefer to have less choice? Oh, and because Samsuns is ahead in terms of display and other innovations, it's good that they are pushing other manufacturers to innovate as well.

45. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

Cause of Samsung we have LESS choices. Samsung owns 60% of android marketshare giving users less options since in a store all you see is Samsung phones and a tiny portion of other companies. Samsung falling down is great for consumers. Other companies will rise up, new players will come and consumer will have more options and a more fair competition.

34. akki20892

Posts: 3902; Member since: Feb 04, 2013

Next year: Overconfident Samsung missed expectations and sold ten million less Galaxy S6 units than it did of the Galaxy S5

38. tech2

Posts: 3487; Member since: Oct 26, 2012

Look who's the predictionist now ;) PS. Staph thumbing up your own comment.

59. Busyboy unregistered

Yeah tech2, I noticed he likes his own comments too. Kinda sad

119. T.Law

Posts: 423; Member since: May 10, 2014

They will still be doing better than Nokia though.

* Some comments have been hidden, because they don't meet the discussions rules.

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