Galaxy S4 sales falling short of initial estimates
Sales of Samsung's top-of-the-line smart phone, the Galaxy S4 , are falling short initial estimates as much as 30 percent due to what many analyst call "a fast saturating segment," according to a report on Sunday by Reuters. Now, analysts who fell under Samsung's marketing spell are reconsidering their overly optimistic estimates, the news agency says.
As Byun Hanjoon, an analyst at KB Investment & Securities, told Reuters, "I'd say most forecasters including myself had this conviction that they'll outperform again - because it's Samsung. They had beaten expectations before, which led many to believe they are bound to excel again with the S4."
Just to refresh your memory, Samsung announced it shipped a record 10 million Galaxy S4 in April, beating the internal record set by the Galaxy S3. Now, most analysts have lowered their estimates for the Galaxy S4 to 7 million units, citing lackluster prospects in Europe and South Korea in particular, Reuters says. According to estimates from Bank of America Merrill Lynch, Samsung is expected to ship 65 million Galaxy S4 this year. By the way, last week Digitimes reported that Samsung might be planning to cut the parts and component orders for the Galaxy S4 during Q3 2013.