• Samsung’s Miscalculation of its S6 Launch Causes Revenue to Slide by 8.4%



    Samsung Electronics recently released its second-quarter earnings estimates and as expected, the South Korean manufacturer called for significant drops in revenue and profits based on what one report claimed was a gross miscalculation of demand for the Galaxy S6 vs. the Galaxy S6 Edge. The company said that for the June quarter, it’s estimating revenue of 48 trillion won ($42.35 billion) down 8.4% year-over-year. The operating profits fell 4% to 6.9 trillion won (just under $6.1 billion). The final results are said to be published later this month.

    The South Korean electronics manufacturer didn’t reveal any numbers but a source told The Wall Street Journal that the company originally organized S6 production assuming that it would sell four regular S6 models for each S6 Edge. It should be noted that the latter is more expensive but has a unique curved display, one which enables extra features. The source went on to explain that in reality, the demand for the two devices was closer to even. This created a surplus of unsold S6 units, especially white ones, while leaving demand for the Edge unfulfilled.

    The claim appears to be consistent with a statement by Samsung mobile head, J.K. Shin, who in April just a few days before the S6 phones launched, announced that the company would raise Edge production to meet demand.

    Apple likely would have experienced a similar issue, just not as severely with the iPhone 6 and 6 Plus. Shortly after the launch of the two phones in September 2014, reports did indicate that Apple had underestimated demand for the 6 Plus and was scrambling last minute to adjust production accordingly.

    We’ll have to wait until Samsung releases the final results later this month to find out more.

    Source: The Wall Street Journal
    This article was originally published in forum thread: Samsung’s Miscalculation of its S6 Launch Causes Revenue to Slide by 8.4% started by Akshay Masand View original post
    Comments 7 Comments
    1. Nuff Said's Avatar
      Nuff Said -
      Is there any information as to what happened to the site earlier today and why an article is no longer available?
    1. fleurya's Avatar
      fleurya -
      Wow, Android users complain about Apple's supposed inflated prices and form over function, then they go after the S6 Edge, while its only differences from the regular S6 is the gimmicky edge display that is useless and makes the phone more prone to breaking AND costs $150 more??

      How sad.
    1. Scotty Manley Silberhorn's Avatar
      Scotty Manley Silberhorn -
      Quote Originally Posted by fleurya View Post
      Wow, Android users complain about Apple's supposed inflated prices and form over function, then they go after the S6 Edge, while its only differences from the regular S6 is the gimmicky edge display that is useless and makes the phone more prone to breaking AND costs $150 more??

      How sad.
      There isn't much difference between the 6 and 6+ other than the camera
    1. bbrks's Avatar
      bbrks -
      and size .......
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      Quote Originally Posted by Scotty Manley Silberhorn View Post
      There isn't much difference between the 6 and 6+ other than the camera
      Display density is different (6+ is 401 ppi, 6 is 326 ppi), resolution is different (6+ is 1920x1080), battery is different (6+ has 24 hr talk time vs 14 hr on 6).
    1. psxcancer's Avatar
      psxcancer -
      Ultimately Samsung can tweak the hardware specs, clone\mirror the idevice after Apple puts out. Samsung can even do a play on Apples idevices, but in the end, they need to create their own device, as Apple does.
    1. wheels9r's Avatar
      wheels9r -
      Quote Originally Posted by fleurya View Post
      Wow, Android users complain about Apple's supposed inflated prices and form over function, then they go after the S6 Edge, while its only differences from the regular S6 is the gimmicky edge display that is useless and makes the phone more prone to breaking AND costs $150 more??

      How sad.
      The gimmicky edge on my Samsung edge can display the time, date and battery status, favourite contacts and even an RSS feed.
      Not bad for a gimmick ah? [emoji23]
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