Samsung 'tempering' investors expectations on the Galaxy S4 sales

Samsung 'tempering' investors expectations on the Galaxy S4 sales
Samsung's gradual evolution of the Galaxy line strategy might turn and bite it in the rear, it seems, according to some industry analysts, and with the latest Galaxy S4 flagship at that, despite the clever marketing efforts.

Susquehanna Financial Group analysts issued missed sales warning for Broadcom and other Galaxy S4 part suppliers, citing reports that Samsung has been meeting with investors to tame the exorbitant sales expectations for its flagship device, which at its peak reached predictions for 100 million units sold for the lifetime of the device, twice what the Galaxy S III has achieved so far.

Interestingly enough, the analysts don't cite the true competition that the S4 has this year in the face of flagship handsets from HTC, Sony, Nokia and whatever Apple comes with in Q3, but also attribute it to an actual Samsung strategy to shift focus more to the vast mid-range market:


Translation - the flagship market is getting saturated and competitive, and the explosive growth is now shifting to the midrangers, where Samsung has some pretty visible plans for world domination, so it didn't introduce much time-consuming revolution with the S4. 

This jibes with other analysts' conclusion that Samsung might be prepping a complete overhaul of the Galaxy flagship franchise for next year, and the S4 will be the last one produced as a consequence of the Apple iPhone disruption that originated back in 2007. It's the sales numbers that will be the real gauge on how the Galaxy S4 is doing, and some of the initial reports are pretty encouraging, so we'll see how this pans out in the course of the year, though the memo says the sales consensus for the S4 has been lowered from 30 to 20 million units for the next quarter.

source: Barron's

Related phones

Galaxy S4
  • Display 5.0" 1080 x 1920 pixels
  • Camera 13 MP / 2 MP front
  • Processor Qualcomm Snapdragon 600, Quad-core, 1900 MHz
  • Storage 64 GB + microSDXC
  • Battery 2600 mAh(17h 3G talk time)

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30 Comments

1. Nathan_ingx

Posts: 4767; Member since: Mar 07, 2012

Oooooo....oooo......Galaxy T series!!!

5. polrt

Posts: 73; Member since: Dec 04, 2012

I told you that samsung s4 is garbage!

8. WHoyton1

Posts: 1635; Member since: Feb 21, 2013

and we told you we dont care and to stop trolling you uselss human being....

13. polrt

Posts: 73; Member since: Dec 04, 2012

I am not trolling, I worry about you, I do not want you to get stuck with this plastic toy device.

15. WHoyton1

Posts: 1635; Member since: Feb 21, 2013

plastic toy....oh thats why 20million people have bought one.....dude just shut up your fighting a losing battle...

16. polrt

Posts: 73; Member since: Dec 04, 2012

Because children are still in need toys.

19. WHoyton1

Posts: 1635; Member since: Feb 21, 2013

so your calling 20million people children.......hmmmm.....im not even gonna go all rage on you because i can see your mind doesnt work perfectly...

23. donfem

Posts: 708; Member since: Mar 30, 2011

Just like you Uh?

2. phljcnth

Posts: 550; Member since: Apr 30, 2012

Samsung Universe

3. Diego!

Posts: 859; Member since: Jun 15, 2009

Will next generation of Samsung Galaxy come with bendable screen? :D

10. WHoyton1

Posts: 1635; Member since: Feb 21, 2013

well withe design 3.0 i would think so besides its either samsung or lg who will bring that tech to life

11. Diego!

Posts: 859; Member since: Jun 15, 2009

Nice, that will be awesome! Who is thumbing us down? WTF?

4. cripton805

Posts: 1485; Member since: Mar 18, 2012

Samsung knows how to sell phones without the silly marketing of some of the competition. With their marketing they actually show the phone and its features.

6. saadasadkhatri

Posts: 9; Member since: Sep 29, 2012

Yes, nice ethical marketing strategy by hiring firms to bad mouth about other company's products. Case in point the hiring of an agency by Samsung to write fake bad online reviews about HTC's flagship. Google "Samsung probed in Taiwan over 'fake web reviews'"

9. WHoyton1

Posts: 1635; Member since: Feb 21, 2013

dude havent you heard of business.....

24. donfem

Posts: 708; Member since: Mar 30, 2011

Apparently not.

7. shahulvm

Posts: 124; Member since: Apr 01, 2012

Samsung...swipe the hand to answer the call was in Pantech Vega almost one year ago and they bring it out now. Just wish to see its sales go down with the premium prices for plastic. I do agree that plastic is durable, but the price sammy charges is too much...

14. taz89

Posts: 2014; Member since: May 03, 2011

they charge a lot because there bom is higher due to the components they use and there screen is one of the most expensive out there.. to produce a s4 is actually more expensive than an iPhone 5 which has "premium" metal so if the s4 was made out of "premium" metal it probably would have been more..

12. vandroid

Posts: 405; Member since: Sep 04, 2012

sony and nokia arent a threat to samsung...

17. SonyXperiaNexus

Posts: 374; Member since: Oct 01, 2012

not in high-end, but in mid-range and low-end, yes. and as said in the article, samsung is trying to cover the midrange as well

18. jsdechavez

Posts: 784; Member since: Jul 20, 2012

Nokia and Sony will win in the mid-range.

20. WHoyton1

Posts: 1635; Member since: Feb 21, 2013

really....how will 3 nokia midrange models compete against 20 samsung midrange models....

21. SonyXperiaNexus

Posts: 374; Member since: Oct 01, 2012

i fail to understand how quantity matters in this equation...

22. SonyXperiaNexus

Posts: 374; Member since: Oct 01, 2012

i have no idea... how does an armed army of 3 defeat an unarmed, untrained army of 20?

25. WHoyton1

Posts: 1635; Member since: Feb 21, 2013

Unarmed and untrained....well so far just because the Samsung midrange phones have android there already well in front for the majority of people so there hardly unarmed or untrained.....

30. SonyXperiaNexus

Posts: 374; Member since: Oct 01, 2012

well, its like this. nokia will definitely get the low end coz android is not built for it, it requires top notch hardware to provide a good experience and half the apps wont run in the low end so apps are out of the question. while wp8 runs as fluently as the high end. low specs render half of android's goodies useless. in midrange, again android does lag except maybe rarely at the high-mid end. there i think the only good phones are xperia sp and perhaps the s4 mini. wp8, again offers high end performance even in midrange and nokia packs awesm harware. wp8 is getting awsm and exclusive apps too so there is tough competition for samsung.

27. roldefol

Posts: 4744; Member since: Jan 28, 2011

People don't want Samsung, they want Galaxy S. Samsung midrangers have nothing to offer that LG, HTC, Pantech, etc. don't already offer. As for Nokia, they can reel in the remaining dumbphone users with their midrangers.

26. kanagadeepan

Posts: 1220; Member since: Jan 24, 2012

OH HO... These analysts and their conclusions...

28. Long1

Posts: 399; Member since: May 18, 2013

Samsung is going to take EVERITHING. The winner takes it all. They are the best. Just try to live with that. But it will not be forever. Only the Unique iBreed, can believe that some brand can be always on the top- even the shining, cheap tin-can, can not help it.

29. Taters

Posts: 6474; Member since: Jan 28, 2013

Hmm interesting. If they concentrate more on the mid range, I wonder how it will affect the GS4 and Note 3. Not sure this is the right strategy unless they are going to give in to media pressure and make the GS5 and Note 4 with really hard to mass manufacturer materials. I hope they ignore it though and just concentrate on making the GS5 as compact as possible with a big screen and big battery like they usually do. Also use the material that is the most durable and easiest to cut perfectly. I am so OCD that these metal phones with gaps galore and crimping marks drives me nuts. A perfectly sculpted piece of plastic is fine with me. If the metal has gaps cough HTC One and nicks out if the box cough iPhone 5, no thank you.

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