Galaxy S4 sales causing a ‘crisis’ at Samsung according to employee

July 9, 2013
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Samsung's Galaxy S III smartphone was one of the most popular and highest selling smartphones last year. This year it was followed up with the bigger, better, faster Galaxy S4. Estimated to reach nearly 100 million in sales, and set to be a huge success. After already reaching 20 million shipped (not sold) some analysts are predicting a slowdown, and now one employee is reporting an internal crisis at Samsung.

With more than 20 million sold in just a few months, we wouldn't call it a crisis, but according to the Korean news ETNews that's exactly what has happened. While Samsung is seeing high sales, they aren't quite as high as expected. The report comes to us by the way of one Samsung employee who wishes to remain anonymous.

The tipster states that the market penetration here in the US isn't as high as predicted, possibly due to saturation from their other popular Galaxy Note II and Galaxy S III, and the S4 isn't doing as well as predicted. As a result, they'll be shaking things up to help fix the crisis caused by the Galaxy S4.

What's the plan? Samsung aims to “maximize the market share with a number of small hit models, not one single mega hit model.” Which basically means they might be going back to the Samsung of old, and releasing a flurry of products instead of one hero device like the SIII and S4.

s4-active-03

This has already started with the Galaxy S 4 having multiple different models from the Mini, Zoom, and Active. And reports yesterday claim possibly 4 different models of the upcoming Galaxy Note III phablet. Each model will be specialized for that market, instead of a one device for all mindset. Now this could all just be talk, but it was interesting nonetheless. We think Samsung is doing just fine, but the Galaxy S5 might need to be more evolutionary than the last.

VIA: AndroidBeat


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  • JPB

    Competition from the HTC One is definitely cutting into their market. When it came out, the S3 really was top dog. But now, the HTC One plus the surprise success of Samsung’s own Note models are really the S4′s competition. That, plus a “fresher” iPhone with iOS 7 is cutting into things a bit.

    • http://www.androidcommunity.com Cory Gunther

      Indeed. Doesn’t help that it looks nearly identical to the GS III to the majority of the public.

      • JPB

        True that. Not to mention that the S3 is a pretty good phone in its own right. There’s really no rush to replace it.

      • Ron Price

        I agree with the design being too similar to the predecessor. I really think that the market feels that it may have been cheated a bit. I mean I can understand the necessity to stay in the game but, in this competitive market you really can’t just make a few adjustments to a product although great adjustments and add a number and expect too much from it in the market share not when the state of finance plays such a major role with a lot of consumers when product purchasing these days.

      • Friendly

        I disagree. I bought the S4 sight unseen BECAUSE they hadn’t deviated too much from the S3. That’s the point – a phone that I liked a lot was improved upon, but not to the point that it became unrecognizable. HTC on the other hand may have a hit with the One, but no guarantee for a continuum. Take Samsung – it’s the Galaxy line, or the Note line… HTC has no line…

  • http://www.toysdiva.com Toys Samurai

    I think the number 1 reason of why they are seeing a lesser penetration rate in US is simple — Verizon. For some reasons, Verizon just doesn’t seem to be promoting the S4 as heavily as the S3. In fact, it even delays the launch of the phone. Given the market share of Verizon in US, it’s not hard to imagine that the sales of S4 will be affected.

  • phor11

    Plus, carriers don’t let you upgrade (on subsidy) as quickly as they’re pushing out new devices.
    So the massive number of people who bought the S3 aren’t buying an S4 even if they want one.
    If they didn’t take that into account in their estimates then it’s no wonder they’re not on target.

    • http://www.androidcommunity.com Cory Gunther

      Truth!

  • http://www.gadgetmilk.com/ gadgetmilk

    uh oh. more Samsung handsets coming up.

  • Robbie Irvine

    two year contracts have had nothing to do with it obviously

  • Kane

    Perhaps stop making everything in plastic and the ugliest software ever. First thing I did with my GS3 was remove it then root + rom it

    • anon

      Why don’t you buy a phone you like then idiot.

  • Friendly

    I call BS. It takes at least year to research and develop, then ultimately ship a new phone. Samsung couldn’t possibly decide to introduce new models within one month of slowing sales. These other devices (S4 mini, active, etc) were in the design phase probably around January 2012 so that they can be on the shelves today.

  • Devesh Yadav

    people hv started migrating towards lumia….their sales seems to be picking up

  • Carlos Javier Leger Durán

    When he says “.. but the Galaxy S5 might need to be more evolutionary than the last”, can anyone tell me what was evolutionary in the GS4? I mean, for real, what did they do that HTC didn’t do before? My only thought is Air Gesture as a new approach, not really innovative =/ I was a bit dissapointed after having seen the HTC One