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Quite smooth: Samsung actually sold 1/10 of the 2 million Galaxy Tabs it claimed in 2010

post #1 of 27
Thread Starter 
Samsung's secret sales data, exposed in court filings, show that the company only sold 262,000 Galaxy Tab units in 2010, rather than the 2 million units it claimed to have.

Samsung made global headlines in November 2010 after bragging it had sold 600,000 Galaxy Tabs in its first month. It later claimed to have shipped 2 million of its tablet devices by the end of 2010, saying sales were "faster than expected."

Market research groups, including Strategy Analytics, Gartner and IDC, jumped on Samsung's reported tablet figures to contrast them with Apple's iPad and to suggest Android was winning significant market share in tablet sales.

Neil Mawston, a director at Strategy Analytics, declared at the time that "the Samsung Galaxy Tab was the main driver of Android success," noting that Android tablet shipments had jumped from just 100,000 in the previous quarter to 2.3 million in the winter quarter, almost entirely due to Samsung.

However, it's now clear that Samsung simply lied about how many tablets it was actually selling. Android tablets weren't successful at all, and Samsung's tablet sales weren't driving anything.

Quite Smooth?

Samsung's lies first began to unravel early in 2011, when the company was forced to admit that the "sales" numbers it was reporting to the media were actually "sell-in" to fill channel inventory, not "sell-out" to actual buyers.

When asked for more information about how many Galaxy Tab units were actually being sold to end users, Samsung executive Lee Young-hee answered, "our sell-in was quite aggressive and this first quarterly result was quite, you know, fourth-quarter unit [figure] was around two million."

"Then, in terms of sell-out, we also believe it was quite smooth. We believe, as the introduction of new device, it was required to have consumers invest in the device. So therefore, even though sell-out wasn?t as fast as we expected, we still believe sell-out was quite OK."

Lee's comments were originally transcribed as "quite small," something that the company and its supporters quickly insisted was a mistake, saying that Samsung's actual tablet sell through to consumers wasn't "quite small," it was "quite smooth."

Steve Jobs quoted Samsung's "quite small" statement when introducing iPad 2, something industry pundits jumped upon as inappropriate and a misinterpretation of what Lee had actually said. As it turns out, however, Samsung's tablet sales were actually about a tenth of what the company was claiming.

Quite Small!

Samsung's real sales were clearly "quite small." The company's sales are now a matter of public record, and according to the company's own filings, it only sold 262,000 Galaxy Tabs in the winter quarter of 2010, not two million.

Then, in 2011, Galaxy Tab sales collapsed. Throughout the year, the original 7 inch model only sold 77,000, then 133,000, then 92,000 and finally 102,000 in each quarter, totaling just 404,000 units the entire year.

Speaking to analysts in October 2010, Jobs had predicted that 7 inch tablets like the Galaxy Tab would fail, despite the tech media's giddy anticipation of the "avalanche of tablets poised to enter the market."

Jobs: 7 inch tablets will be DOA

"We think the 7 inch tablets will be dead on arrival," Jobs said, "and manufacturers will realize they're too small and abandon them next year. They'll then increase the size, abandoning the customers and developers who bought into the smaller format."

Jobs was dead on accurate. Samsung subsequently introduced 10" Galaxy Tab models at Mobile World Congress at the beginning of 2011, but after Apple introduced iPad 2, Samsung returned to the drawing board, noting, "we will have to improve the parts that are inadequate. Apple made it very thin."

Samsung later claimed that its redesigned Galaxy Tab was thinner than Apple'd iPad 2, before being caught in the lie by InformationWeek and unable to back up its claims.

However, Samsung's sales data shows that the company only sold a total of 133,000 of those larger tablets in the second quarter of 2011, then 201,000 in the third and 245,000 in the fourth quarter.

Samsung Tablet Sales
Source: Apple v. Samsung court documents


Samsung still hasn't sold 2 million Galaxy Tabs

Both sizes of the "accused tablets" combined sold a total of just 983,000 in 2011. This year, Samsung's sales of all Galaxy Tab models have imploded, selling just 193,000 across the first two quarters of 2012. To date, Samsung hasn't sold even 1.5 million Galaxy Tabs in two years.

In contrast, Apple sold 7.8 million iPads in 2010, and went on to sell 15.9 million more in 2011. It has sold another 27 million in the first three calendar quarters of 2012, 17 million in the last quarter alone.

Samsung's gross misrepresentation of its tablet sales is not just a credibility problem for the company, but also fires a huge hole through the numbers reported by market analysts who blindly run with them.

Strategy Analytics, Gartner, IDC and others for example, assigned Samsung significant tablet "market share" back in 2010 based on its announced shipments of 2 million Galaxy Tabs, deducting this "share" from Apple to arrive at the suggestion that the iPad maker was "only" responsible for around 77 to 83 percent of the tablets being sold.

In reality, Apple has sold virtually all of the tablets users have purchased.

No market for 7 inch tablets?

If Samsung actually shipped 2 million 7 inch Galaxy Tabs in 2010, and it has since only sold 725,000 of them in the last two years as its documented figures indicate, there should be an unsold inventory of 1.3 million mini-tablets out there, somewhere.

Combined with the fact that the only 7 inch tablets that are known to have sold in any quantity at all are Amazon's Kindle Fire and Google's Nexus 7, neither of which is capable of selling at a sustainable hardware profit, the market appears bleak for 7 inch tablets that function like stretched smartphones.
post #2 of 27

So, as a publicly traded company, Samsung will receive zero punishment for lying to their shareholders and the greater population as a whole.

 

But if Apple is found to have sold so much as one fewer iPad than they claimed, they'll be hit with millions in fines and a 40+ point drop in stock.

 

No wonder everyone here never sees Android tablets in public, THEY HAVE ALWAYS BEEN LYING! lol.gif

 

"I guess that's a case of… 'Shipped, Not Sold'."

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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post #3 of 27

Oops.

post #4 of 27

what they lied! but I thought they had uncorruptable morals, next you are going to tell me they have been stealing other peoples designs...

 

oh... nvm....

post #5 of 27
Originally Posted by Napoleon_PhoneApart View Post
Oops.

 

They just got Samsung'd.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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post #6 of 27

The figures in the chart are US only as opposed to Samsung's comments which were global.  Not saying they didn't lie, but just want to make sure everyone is comparing apples with apples (no pun intended)...

post #7 of 27

Does this mean that similarities to Apple's designs have no bearing on sell-through?

post #8 of 27

Can't wait to see how the analysts spin this, now that they have been proven wrong.

Artificial intelligence is no match for natural stupidity.

 

"A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete...

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Artificial intelligence is no match for natural stupidity.

 

"A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete...

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post #9 of 27
Originally Posted by Realistic View Post
Can't wait to see how the analysts spin this, now that they have been proven wrong.

 

They'll try to explain how Samsung sold ~1,738,000 tablets to the rest of the world in a quarter.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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post #10 of 27

Why Apple want to enter the 7" market if sales are so low? 

"Apple people have no objectivity when it comes to criticism of Apple.." Lenovo X1 Carbon is out..bye bye MBAir

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"Apple people have no objectivity when it comes to criticism of Apple.." Lenovo X1 Carbon is out..bye bye MBAir

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post #11 of 27

Samesung's claim... shipped-sold-shipped-sold-shipped-sold-shipped-sold

 

Reality... shipped-sold-returned-shipped-returned-shipped-sold-returned-shipped...

Where are we on the curve? We'll know once it goes asymptotic!
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Where are we on the curve? We'll know once it goes asymptotic!
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post #12 of 27

Well it's the same question of why would anyone buy a candy bar phone when flip phones and Blackberry devices are doing so much better? This was in 2007.

 

It takes Apple to truly generate profits by creating products people actually want to buy. Competitors are good at making junk. No deception necessary.

 

I can't wait for Apple to break open the 7" tablet space. The Nexus 7 is a good device, earning high praise, but we'll have to see if Google can keep it up. By the way, if the Nexus 7 had 3G/4G capability, I would have bought it. 

post #13 of 27

Hopefully this is the end of the "iPad has only 68% tablet market share" nonsense.

 

http://goo.gl/s2SnT

Please update the AppleInsider app to function in landscape mode.

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Please update the AppleInsider app to function in landscape mode.

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post #14 of 27
Quote:
Originally Posted by daylove22 View Post

Why Apple want to enter the 7" market if sales are so low? 

 

Sales aren't necessarily low because of the size, it could be lots of things.  Also, technically, Apple is getting into the 8" tablet market, not the 7", so they can cover their ass if they are successful by saying that they still have never made a 7" tablet. 

post #15 of 27

Everybody sing

Liar Liar Samsung Liar

iMac 21.5" 2.7 GHz (2011), 1TB HDD, 8GB RAM; iPhone 5c 16GB White; iPod Touch 4G 8GB Black; iPod Touch 2G 8GB
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iMac 21.5" 2.7 GHz (2011), 1TB HDD, 8GB RAM; iPhone 5c 16GB White; iPod Touch 4G 8GB Black; iPod Touch 2G 8GB
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post #16 of 27
Quote:
Originally Posted by superdx View Post

Well it's the same question of why would anyone buy a candy bar phone when flip phones and Blackberry devices are doing so much better? This was in 2007.

 

It takes Apple to truly generate profits by creating products people actually want to buy. Competitors are good at making junk. No deception necessary.

 

I can't wait for Apple to break open the 7" tablet space. The Nexus 7 is a good device, earning high praise, but we'll have to see if Google can keep it up. By the way, if the Nexus 7 had 3G/4G capability, I would have bought it. 

 

The Nexus 7 is a nice device, but you can't type on it easily and it has almost no software, so even if it had better hardware features it's basically just for reading novels and watching movies.  To me that's a product that has to hit a sub $100 price before it becomes anything worth buying.  

 

Even if Android tablets are eventually okay, there's still no apps like Garage Band or iPhoto or Pages etc. People will eventually realise (on that mythical day when Android tablets are worth buying), that the iOS devices are still the only one's that have decent productive software.  All the rest are are about as useful as the Pocket PC was or a Palm, (but bigger).  

post #17 of 27

Uh Oh.  I'll bet the class action attorneys are lining up faster than customers line up to buy the latest iPad and iPhone the day they are announced.

 

LET THE LAWSUITS AGAINST SAMSUNG FLY.  Kind of sounds like Samsung is in DEEP KIMCHI.

post #18 of 27

Ha ha ha.  I always wondered, if iPad was only 60 - 70% of the market, I should be seeing 1 non-Apple tablet in the wild for every 2 iPads.  I'm seeing more like 1 non-Apple for every 20 iPads.  And this includes the departure gates at airports in Seoul and Tokyo just last month!

post #19 of 27

This is why I maintain that Apple will NOT release a 7 Inch tablet,
Not now, or anytime in the foreseeable future. (if ever)

No One can question 50 million iPad's SOLD,      …..and counting.

Apple ONLY caters to where they want to play, NOT where everybody in the blogosphere "thinks", they should play.

Any size OTHER than the established 9.7 inch iPad size, will be addressed by Apple, if they choose do so by the iPod Touch.

 

I can see Apple making a future iPod Touch with a 4.5 to 5 inch display.


So
IF there is any other "tablet" size offered by Apple, it will be with an increase in the display size, of the iPod Touch.



   ......Next


Edited by BuffyzDead - 8/9/12 at 10:28pm
post #20 of 27
Quote:
Originally Posted by Brian Ward View Post

Does this mean that similarities to Apple's designs have no bearing on sell-through?

No, half of that 260k probably tought they were buying an IPAD.

post #21 of 27

I have never been able to believe the Tablet Sales Figures from what i see in the real world.

 

I run an E-Commerce SIte for a major US Retailer with over 1,100 stores and one of the top traffic'd web sites in the world.

 

We currently see iPad with >92% of all Tablet Traffic and iPhone with >65% of SmartPhone Traffic.

We also see iOS at over 16% of all traffic to our websites.

 

And if i look at sales (conversion) of Android vs. iOS, there is no comparison.  Android users are not shopping or spending $$ at the same rate as iOS users are.

 

Clearly these numbers do not match with the public headlines of unit sales, but we are planning our business around iOS because of the significant penetration with users.

post #22 of 27
Quote:
Originally Posted by Realistic View Post

Can't wait to see how the analysts spin this, now that they have been proven wrong.

 

They'll spin it the same way they did when they were wrong the other hundred times before. The fool is the person that keeps paying them for their "analysis".

post #23 of 27
Quote:
Originally Posted by drblank View Post

Uh Oh.  I'll bet the class action attorneys are lining up faster than customers line up to buy the latest iPad and iPhone the day they are announced.

 

LET THE LAWSUITS AGAINST SAMSUNG FLY.  Kind of sounds like Samsung is in DEEP ROTTEN KIMCHI.

Corrected that for you!

;-)

post #24 of 27

I'm pretty surprised DED would purposely omit mentioning that the sales figures and article concern only US sales, and at the same time use worldwide estimated sales numbers as proof they lied. They may have (and probably did fudge them. . . maybe a LOT) but the article as written is no better with lots of fudging itself.

melior diabolus quem scies
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melior diabolus quem scies
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post #25 of 27
Quote:
Originally Posted by daylove22 View Post

Why Apple want to enter the 7" market if sales are so low? 


To choke out Android and Amazon.

post #26 of 27
Quote:
Originally Posted by daylove22 View Post

Why Apple want to enter the 7" market if sales are so low? 

 

It isn't technically the 7" market. Apple's "mini" is more like an 8", and the 4:3 ratio (vs 16:9) gives it something like 30% more screen real estate… so it would be notably larger (and more usable) than competitor's 7" tablets...

post #27 of 27
Quote:
Originally Posted by drblank View Post

DEEP KIMCHI.

 

mmmm, Kimchiiiii……….

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