Samsung with modest expectations for the Galaxy S5 sales, to refocus on mid-range and tablets next year

Samsung with modest expectations for the Galaxy S5 sales, to refocus on mid-range and tablets next year
Samsung has allegedly done a next year forecast for its mobile business, says a Korean publication, where it pegs the total expected phone sales at 360 million units. This is a huge number and a 20% increase year-on-year, but still the slowest growth since the beginning of the smartphone boom.

The lower expectations have apparently been derived from the performance of the Galaxy S4, which still sells like hot cakes, but not as much as Samsung expected in its yearly predictions in the previous forecasting season. 

Therefore Samsung has allegedly trimmed its sales figures for its next year flagship - the Galaxy S5 - which it now doesn't expect to sell in quantities that will beat the increase from the Galaxy S III to the S4 numbers. If the rumors for a 64-bit Exynos processor in a metallic chassis, 4 GB of RAM and OIS camera pan out, the S5 might beat a modest forecast, but for now Samsung is eating humble pie, it seems.

In fact, Samsung is planning to focus more on low- to mid-range handsets, claims the source, as well as tablets, where it smells much more opportunity for growth, and expects just 35% of its phones sold next year to be "premium models". 

source: ETNews via G4Games



1. Shatter

Posts: 2036; Member since: May 29, 2013

Why does Samsung become on of the best at something them stop working on it, they had the best desktop hard drives for the $ a few years ago spin point s3s. They also had the best ram for the $ that Overclocked super high even though it was super fast anyway. Next they will stop making ssd which they are also one of the best at right now.

2. TheStanleyFTW

Posts: 252; Member since: Feb 20, 2013

Think about if Samsung made a laptop where every components were made by them and a AMOLED screen.......Daamn....oh well...Just a dream -_-

4. Shatter

Posts: 2036; Member since: May 29, 2013

They have literally made/make everything a arm laptop would need they could do it. I think all they never really got into was the GPU area.

27. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

CPU by Samsung, GPU by Samsung? Sorry, I don't wan't to break your dream but Samsung doesn't hae experience for that...

15. bubbadoes

Posts: 1225; Member since: May 03, 2012

I can tell you why. It's because Samsung has flooded the market with S8 processors with 3 gigs of ram with screens of 450ppi and above. Their is no where to go but focus down in this market as it stands now. You can't go any higher in this day and age. Maybe in the future, but not now. Don't get me wrong, I'm gonna hear all the gripes about multi-tasking, this and that, etc. It's a phone! not a pc. Angry Birds and Facebook don't need that kind of power to run!

20. MistB

Posts: 581; Member since: Jul 07, 2012

They aren't phones anymore, fella. The phone part is merely an app pre-installed on a pocket PC, the smartphone succeeds the pocket PC's of yesteryear. Gaming abilities are now way past Angry Birds and they will continue to evolve past the PSP's abilities (if they already haven't) and demand for 4K movie streaming over the next decade will be huge. Plus there are many thousands of ways to keep in touch via Google and Apple's services and not just FB. Fella, I ditched my crappy Nokia 6310i a long time ago because it may well have worked well at the time for some, but in today's increasingly digital handheld social networking/location aware world it really is an antiquated piece of junk not fit for purpose anymore. I would have agreed with you in 2003, not in 2013 heading into 2014. Plus the media/BBC need to quit calling them mobile phones. Mobile Phone = Nokia 3310/Asha 100 series.

25. ardent1

Posts: 2000; Member since: Apr 16, 2011

The reason Samsung will fail is already predict by Clayton Christensen's theory called Disruptive Technology. Since android OS is free, android smart phones are basically commodities, and the OEMs that win in the long run are low cost producers. There isn't any smartphone that Samsung produces that can't be copied by a low-cost OEM. You look at ZTE, Huawei et al, their smartphones are just as good as Samsung's and cost $100's less.

3. Sauce unregistered

If the s5 does in fact prove worthy of buying, by being significantly better and more improved than its predecessor, then I will most certainly snatch that bad boy on launch. No doubt.

5. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

"If the s5 does in fact prove worthy of buying, by being significantly better and more improved than its predecessor..." That maore fits to iPhone than to Samsung's flagship, so say that for Apple.

24. darkkjedii

Posts: 31529; Member since: Feb 05, 2011

Dude what the heck was he talking about in post #3? This article wasn't about, nor did it mention apple. That response made absolutely no sense, now that's trolling.

28. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

First of all, I thought that you don't talk with me. I know that he didn't mentioned Apple, but everything he said in his comment more fits to iPhone than to Samsung's flagship and that's why I suggested him to say that to Apple. Seems that you have serious problems with understanding and it is not about my English grammar mistakes.

6. jove39

Posts: 2148; Member since: Oct 18, 2011

samsung did right thing by lowering sales expectation...after s3/onex people like me didn't felt need for upgrade to s4/ phone after little less than 2 fine...does everything it need...I can live with it for another year. And another important point for me to not consider samsung device is availability of nexus phones/tablets. So I ordered N5 and have N7...and hope to stick with Nexus devices from now on :)

7. TylerGrunter

Posts: 1544; Member since: Feb 16, 2012

Same here, I have the N7 since September, and just ordered the N5, but I must admint I have always been kind of a Nexus fan.

13. Stuntman

Posts: 843; Member since: Aug 01, 2011

I've had my SGS3 for almost a year and a half now. The N5 was really tempting, but I'm holding off as my SGS3 still works really well. I feel I will be happy with it for another year.

17. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

True. +1

8. taz89

Posts: 2014; Member since: May 03, 2011

The reason for the modest forecast is simple, stock market. For the s4 the set a forecast for it to sell really really well and when it sold just really well the stock prices went down. This time they saying it be good so if the s5 sells just good then stock prices won't take a hit as that's what the investors were told and expected and if it sells really well then the stock prices will rise.. Also you can't expect 100% growth yoy every year.

9. Loubielou

Posts: 603; Member since: Jul 11, 2012

Samsung seems at last to be under alittle bit of pressure after the S4 did not sell so well.o.k we want better built phones from Samsung,but they do not want to be like Apple an Overcharge consumers for there Smartphones,an thats one way of making there sales target not so positive,Samsung have got to stop producing things for Apple phones,so they know nobody as the same components inside there smartphones,thats why the have had to rush out the new processor for the S5 so the one they produced for Apples phone will not be able to outshine theres,which is the wrong idea by Samsung,let Apple get somebody else to do this for them

10. trickster_qc

Posts: 107; Member since: Jun 18, 2013

so for 2-3 months we were told Samsung was lowering it's sales expectations for the S4 and that even the S5 would come out earlier and blah blah blah. That never happened. The S4 sold very well, and still does and it will probably reach over 60 million units by the time the S5 is out. So I'm pretty sure all this is bullcrap since it's almost impossible for a manufacturer to evaluate future sales numbers for a product that hasn't been announced and isn't finalized yet.

11. Commentator

Posts: 3723; Member since: Aug 16, 2011

Apple's been artificially setting the bar low for years on their own projections as well.

12. jove39

Posts: 2148; Member since: Oct 18, 2011

Well...every one in service/manufacturing industry have to provide annual sales forecast to get approval for fiscal budget and all kind of management stuff. Sales number for S4 are very impressive...but those are less than what samsung they are adjusting expected sales forecast of S5 accordingly. Nothing bad in it.

16. trickster_qc

Posts: 107; Member since: Jun 18, 2013

They aren't even sure of what will be in the S5 in terms of specs and final design, processor and such. So they are already lowering their sale expectation from a device that isn't completed yet? On top of the Xmas sale period starting in 2-3 weeks ( biggest of the year ) that will clearly influence how much phones they think they will sell in the first half of 2014? it's too early.

14. JMartin22

Posts: 2379; Member since: Apr 30, 2013

Cue the same hypocrites next year: "improved low-light camera, better CPU/GPU, more accurate and efficient display, better memory capacity, connectivity and software? INCREMENTAL!" "It doesn't transform into a hover board/it's not made out of cheap soda can aluminum, Samsung is lazy"

18. DimitriTech unregistered

5, s5, 5s,.. high fives all around!!! :D

19. gallitoking

Posts: 4721; Member since: May 17, 2011

their time at the time is due and we will see a decline on sales from their S5, no one stays at the top forever.. it was nice Samsung don't let the door hit you on your way down

21. MistB

Posts: 581; Member since: Jul 07, 2012

Dude, their time is far far from due. Scaremongering articles like the one published from hit and miss Korean sources aren't really worth their salt. This isn't really predicting an apocalypse as such, more or less it's better to lower expectations than to be wildly optimistic and predict 100 million sales, last time I checked they were still the largest smartphone OEM and still have a sizeable chunk of the smartphone pie. What about the fail of the IPhone 5c sales?

22. gallitoking

Posts: 4721; Member since: May 17, 2011

the 5C are not their flagship device, is like me asking you how are the sales of the Galaxy Mega series

29. MistB

Posts: 581; Member since: Jul 07, 2012

So all of a sudden because of a prediction by unnamed sources says Samsung lowering expectations that equals a fall? It's hardly a fall my friend, plus it'll hardly be the decline of an unannounced device. This is pure speculation at it's best. I'm not talking about Samsung's fictional flagship, the 5C, flagship or not, was marketed by Apple at the mainstream consumer and hoping to sell in millions, yet the 5s has outsold it by the bucketloads. North America does not equal the word's population of IPhone usage. IPhone 5C is and was a flop.

26. ardent1

Posts: 2000; Member since: Apr 16, 2011

The Samsung premium over other smartphones is disappearing. Samsung led the charge with bigger screens to differentiate against Apple - guess what, the other android competitors have bigger screens. There is a limit on how much bigger Samsung can increase the screen of the S5 without taking sales from the Note 3, which means Samsung placed themselves into a corner. The biggest problem with Samsung is that their products are over priced and they know it. Anything Samsung can do, the android competitors can copy and today, the competitors are much faster at copying. And the 5c sales are going gangbusters. If you understand differential calculus, you can pull the 5c sales from the raw data.

30. MistB

Posts: 581; Member since: Jul 07, 2012

But what can the competitors give which differentiate themselves from an HTC/Sony and LG? Everywhere I see, look and hear there are only two dominant brands that spring to mind, Apple and Samsung. Sony release the Xperia Z2, LG the G3 and HTC the HTC One version 2, wowed by the tech community but not enough to steer the consumer away from the S5 and consumers are willing to pay that bit extra of what they feel Samsung can give where the others copy....and fail.

23. Azurus

Posts: 12; Member since: Apr 22, 2013

what do they mean by "premium models" ???

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