Reports are circulating out of Korea hitting the Galaxy S8 has failed to outsell its predecessor in 1st month.
The Bell a financial publication, via The Investor, cited reports from industry analysts that showed 20 percent lower sales of Galaxy S8 and S8 Plus at around 9.8 million units against 12 million Galaxy S7 and S7 edge in the first two months. According to the unnamed analysts, Samsung has reduced component orders, a sign of lackluster sales.
A Samsung official refuted the reports, pointing that the Galaxy S8 initially launched in a smaller number of markets compared to the wide global launch that the Galaxy S7 enjoyed. “We estimate S8’s sales volume to be similar to that of S7 for now,” the Samsung representative added.
If the analyst reports would be accurate, it would be a major reversal for the well-reviewed Galaxy S8. On May 16, Samsung announced it sold 5 million Galaxy S8 units in the first three weeks of availability, 20 to 30 percent higher than the Galaxy S7 and S7 Edge. To go from 20 percent higher to 20 percent lower, sales in the second month of availability must have been extremely poor, which is unlikely.
As always, the truth is probably somewhere in the middle. The Galaxy S8 is clearly a popular device, but the days of unbridled growth in the smartphone market are long over, even for Samsung.
In any case, it’s not like Samsung is suffering, at least financially. The company just estimated record profits for the second quarter. At $12.1 billion, Samsung is poised to beat Apple as the most profitable technology company in the world.
Due to unexpected sales number of S8 Samsung appears to be rushing to market with a new Galaxy Note model before the latest iPhone arrives. But this isn’t your regular year for Samsung. First of all, Samsung still has to make up for last year’s Galaxy Note 7’s rushed launch which contributed to the phone’s exploding demise. Secondly, Apple is coming out with the iPhone 8 this year, which will easily be the most exciting iPhone launch in years.
The Bell says that Samsung wanted to launch the Galaxy Note 8 at IFA 2017, during the first week of September. But the handset may be unveiled in the third or fourth week of August, with sales supposed to start at some point in early September.