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"Weak demand for Samsung Galaxy S4"


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Old 09-06-2013, 13:08
southlad
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...according to this BBC article.

JPMorgan analysts were quoted as saying by Bloomberg news agency that the S4's "peak-quarter number seems way below our previous estimates".

What has gone wrong?
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Old 09-06-2013, 14:34
enapace
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I think one thing the S4 has done bad is that they released the proper S4 and now seem to be constantly doing others S4 Mini, S4 Active, S4 Zoom, S4 Google Edition. They should of released them all at once as a suite similar to how software companies do it or at least announced them all at once. Instead they keep doing separate ones and personally think it just a ******** thing to do.
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Old 09-06-2013, 14:46
slick1two
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I think one thing the S4 has done bad is that they released the proper S4 and now seem to be constantly doing others S4 Mini, S4 Active, S4 Zoom, S4 Google Edition. They should of released them all at once as a suite similar to how software companies do it or at least announced them all at once. Instead they keep doing separate ones and personally think it just a ******** thing to do.
I agree this article pretty much goes along the same lines

http://www.phonedog.com/2013/06/08/t...ot-separately/

I personally think the S4 Active SHOULD have been the main S4 that was released. The same phone with better materials, construction and waterproof feature. I think they are just going to confuse people now. Active, Zoom etc. Yes choice is good, but the first S4 was billed as THE Life companion, there tagline and slogan for the phone. So what does that now make these other "S4s"? Yes they all differ and offer a different experience, but still carry the S4 branding, so people are likely going, huh, what the hell?? May just opt to go for a different make of handset altogether.

With regards to the weak demand argument. I think this shouldn't really be a surprise. There are many good Android powered offerings now. Also mid range handsets are very capable and pack dual Core CPUs these days, with good screens, a gig of ram etc. I am Windows phones and Nokia in particular have gained some traction. Not to mention HTC crashing the party with the One. Not sure how many One's have been sold but I get the feeling HTC has sold a decent number and are still moving a good number. So that would be eating in to S4 sales.

edit: Around 5 million HTC One's sold so far.

http://www.androidcentral.com/report...ne-phones-sold

I think in the next couple of years, we may find no one is really pulling away the way Apple and then Samsung did. They will still have sizable chunks of market share, but others will grab a bit more of the pie too.
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Old 09-06-2013, 16:06
wavejockglw
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Could the high price have something to do with the weaker demand?

Bearing in mind the S4 is currently about 10% more than the equivalent Apple iPhone 5 16GB and similarly priced HTC and Sony Xperia flagship handsets.

The price will undoubtedly fall when new competition arrives making the handset a more attractive proposition for networks and customers.

Samsung have probably done very nicely with the uptake of the S4 so far at premium prices and have a healthy range of lower priced smartphones already on the market. The Note 3 will take over as the flagship when released, the S4 will probably drop to a more affordable price and the S4 Mini will offer a value proposition covering the mid market segment. All things considered Samsung have got most segments covered with both previous models like the S2 and S3 and newer options like the S3/S4 Minis. Value does not necessarily mean buying old technology and Samsung appear to be offering both established and new models to compete with older iPhones and new competition from great value offerings by LG/Google, Sony, Huawei and ZTE. It will be interesting to see how Motorola shakes up the market when they launch their new feature packed budget smartphone in Q3.

Sales of the S4 are unlikely to be as big a concern as the article makes out or Samsung would have reduced prices to attract more customers. The S4 is comfortably sitting on top of the heap in terms of being the highest premium smartphone at present and perhaps that is where Samsung want to keep it for as long as they can as they balance the demand for volume against the focus on margins.

Just a thought..... 10 million in the 1st month sold then 7-8 million a month..... So in 6 months around 45 million flagship smartphones at top of the market prices! Weak demand? Compared to what?
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Old 09-06-2013, 17:18
alanwarwic
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Overstated analyst estimates or weak demand?

But have we reached a saturation point yet?
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Old 09-06-2013, 17:19
daclick
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Working in a phone shop I have to say ive served a lot of loyal appleists who have changed from iphones to the s4 to me that's the mission and its going successfully so although it may not have sold a load its certainly made an impact enough to move the sheep away some of which were trading theyre i5's in and buying out
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Old 09-06-2013, 17:25
wavejockglw
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Another reason the S4 might not be selling as quickly as some analysts predicted is Samsung's policy of upgrading some of their previous models to meet the needs of operators promoting LTE.

The S3 has an LTE version available which is priced a bit lower than the S4 and that might be meeting the needs of those who don't want to pay top dollar for the latest flagship phone.

Samsung have revised the technical spec of a number of their smartphones to ensure they remain viable alternatives to current models. I expect S3 sales to have been holding up pretty well on networks like 3 and EE who now only supply LTE enabled versions of handsets where available.
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Old 09-06-2013, 17:30
wildphantom!
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Sony announced Xperia Z sales topped 4.6 million in 40 days back in April (that's without having a carrier deal in the US) and HTC have just announced sales of 5 million for the One. Maybe consumers are choosing the Xperia Z and HTC One over the S4?

As others said Samsung are diluting their S brand and are making the same mistake as HTC.

Samsung should just keep these two lines:

Galaxy S#
Galaxy Note series

Maybe Rename Galaxy S Mini series to something else?
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Old 09-06-2013, 17:50
Quackers
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Working in a phone shop I have to say ive served a lot of loyal appleists who have changed from iphones to the s4 to me that's the mission and its going successfully so although it may not have sold a load its certainly made an impact enough to move the sheep away some of which were trading theyre i5's in and buying out
I went the other way and never want a Samsung phone again after having an Galaxy S2. Plus i have found iOS to be a lot more stable and less crashy than Android was.
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Old 09-06-2013, 18:19
ShaunIOW
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The S4 looks a bit bland to me and I quite fancy a HTC One, but its the price that's putting me off as I'm not paying more for a mobile than I could get a laptop for, and the networks don't seem as generous with their deals anymore and I'm not keen on being tied into a 24 month £30+ contract, as these days you just don't know how your income is going be a few months down the line plus new phones come out so thick and fast these days.
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Old 09-06-2013, 18:24
whoever,hey
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The S4 looks a bit bland to me and I quite fancy a HTC One, but its the price that's putting me off as I'm not paying more for a mobile than I could get a laptop for, and the networks don't seem as generous with their deals anymore and I'm not keen on being tied into a 24 month £30+ contract, as these days you just don't know how your income is going be a few months down the line plus new phones come out so thick and fast these days.
Just put the money in account to accrue interest then in case you lose your job.
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Old 09-06-2013, 19:16
reclusive46
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I think its probably because of the price, even expensive that the iPhone. Most consumers are going to prefer the iPhone and when they are told an alternative is even more expensive, they are completely put off.
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Old 09-06-2013, 19:49
slick1two
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I think it's quite simple. The competition have upped their game and have brought extremely good handsets to the market and are selling good numbers. That will of course mean less s4s are being sold. Also maybe people don't see it as a big enough improvement over the s3 which still seems to be selling well and is cheaper than an s4.

I wouldn't really call it weak demand I would say there is better choice than there was in previous years so people will favour one of the rival phones for one reason or another.
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Old 09-06-2013, 20:00
alanwarwic
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Most consumers are going to prefer the iPhone
There is a drop in subsidy payments that effect various markets.
It is hitting everyone.

I picked up a rugged water resistant Defy + for £6 PAYG.
For practicality I rate that above the iPhone in that middle end battle where the iPhone now belongs.

I know the iPhone gets a lot of plugs but it still slots in at the middle end.
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Old 09-06-2013, 20:11
Voynich
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It's pricey! I know that on T-Mobile with the full monty plan, you can get an iPhone 5 for £29.99 but if you want the S4 it's £99.99. Maybe that has something to do with it?
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Old 09-06-2013, 20:15
Aye Up
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I think it's quite simple. The competition have upped their game and have brought extremely good handsets to the market and are selling good numbers. That will of course mean less s4s are being sold. Also maybe people don't see it as a big enough improvement over the s3 which still seems to be selling well and is cheaper than an s4.
Honestly I think this hits the nail on the head. Samsung have managed to get through the last cycle on gimmicks along with little or next to no real innovation. I think most would agree beyond a spec bump there isn't much in it between the S4/S3/Note 2. You have to offer HTC and Sony some kudos for doing what they have done. They have went back and brought out handsets which are not only universallly applauded, but also have excellent build quality worth of a Flagship. Sony and HTC have offered an genuine well thought out alternative and it seems to be gaining traction which is nice to see.

I begrudge the market being dominated by two players, its wrong, unhealthy and anti competitive imho. I welcome any genuine alternative to the dominance of Apple and Samsung. I really hope Nokia can make something of Windows Phone, and maybe Blackberry can experience somewhat of a resurgence.
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Old 09-06-2013, 20:36
alanwarwic
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I think most would agree beyond a spec bump there isn't much in it between
They all have the most massive spec jump so far.
That includes the HTC One, S4 and Xperia Z.

It is exactly like when we went from 480X320 to 800X480+
You don't need the quad core or a 1080p screen but you do at least get something for your money
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Old 09-06-2013, 20:44
Step666
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From what I've seen, there was the standard initial rush of people who had to have the S4 straight away, then sales dipped as the rest of people waited for the price to settle a bit.
Now that the deals are improving, sales seem to be picking up again - I know that in Vodafone sales have risen sharply since they dropped it from £100 up-front on a £37 tariff to free on a £33 tariff.

Until some more numbers are announced though, it's hard to say how it's doing overall.
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Old 09-06-2013, 20:47
wavejockglw
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I think its probably because of the price, even expensive that the iPhone. Most consumers are going to prefer the iPhone and when they are told an alternative is even more expensive, they are completely put off.
That is absurd.

The Apple product limits a customer to remaining with Apple to make use of the apps and does not allow the free transfer of photos, music and videos via Bluetooth or NFC.

An Android device has far more flexibility and the latest OS (Jelly Bean 4.0/1/2) is very stable and fluid.

The fact Samsung has managed to sell 10 million S4's in a month at a 10% price premium above the current flagship iPhone tells it's own story. The networks have been discounting iPhones for some time to shift the pre-ordered quantities that Apple insist on to make stocking the device profitable for them. With quality products coming thick and fast and with prices falling, for all but the highest end devices, the days when Apple can dictate volume requirements to vendors look numbered which is good news for consumers.
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Old 09-06-2013, 21:02
swordman
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Analysts have become over excited with Samsung and now realise they may not actually sell 10 billion phones in the first month. The actual sales are clearly in line with what Samsung think that is why they keep telling us how many they have sold.

This thread is a little like the chick and the acorn

However Samsung sales should fall in the future if the competition can get/keep their act together, much of samsungs success was based on poor competition as well as good phones.
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Old 10-06-2013, 11:13
barkingessex
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the s4 can now be bought new online for £450 which is significantly cheaper then when first available

personally i think this is a bargain for all the features it has and typical price range for a top end smartphone...not overpriced at all
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Old 10-06-2013, 11:19
wavejockglw
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the s4 can now be bought new online for £450 which is significantly cheaper then when first available

personally i think this is a bargain for all the features it has and typical price range for a top end smartphone...not overpriced at all
That is a very fair price for the S4. I think it's a little steep at £580.

Just read that a forthcoming update will allow the transfer of apps onto the SD card from within the OS.
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Old 10-06-2013, 13:55
clonmult
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Overstated analyst estimates or weak demand?

But have we reached a saturation point yet?
I think we are close to reaching saturation point.

But likely this is all down to analysts overstating estimates. Their analysis tends to be based on the roll of a D12.
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Old 10-06-2013, 15:06
MrSuper
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the s4 can now be bought new online for £450 which is significantly cheaper then when first available
Which retailers are selling it for that price? That's a heck of a price drop from £580 to £450. I haven't seen anyone selling it for £450.
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Old 10-06-2013, 15:11
barkingessex
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http://www.valuebasket.com/en_GB/Sam...ew/12890-AA-BK
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