A report in The Wall Street Journal says that sales of Samsung’s Galaxy S5 flagship phone were down 40 percent in its first 3 months on sale.
The report suggests that the device only sold 12 million in those first few months – that’s down 4 million from the Galaxy S4. It adds to the recent news suggesting Samsung’s smartphone business is in decline, with falling profits and market share.
Apparently the new devices were “piling up in warehouses”, after Samsung made the fatal error of producing more than was needed.
With excess inventory pilling up and suggestions of an executive reshuffle, many have tried to understand why Samsung’s previously strong smartphone business may be faltering. A number of people have pointed to the fact that the iPhone 6 and 6 Plus sold more than 10 million units in its first weekend, with a reported 20 million pre-orders in China alone. Apple confirmed during its earnings call last month that the company had sold over 39 million iPhones last quarter.
So, is Samsung’s latest mishap just a bump in the road or did Tim Cook’s “mother of all upgrades” become a reality?
Source: The Verge