Rumor: Samsung slashes smartphone part orders for first time in company history

Posted:
in iPhone edited January 2014
A new report out of Korea claims Apple's chief rival Samsung is slashing orders for new smartphone parts, marking the first time the company has done so in its history.

gs4


Samsung allegedly plans to cut production of its new flagship Galaxy S4 handset by between 10 and 15 percent, according to ETNews.com, which cited anonymous sources. The company reportedly plans to build 6.5 million Galaxy S4 units in the month of July, which would be half the number it build in May.

The company allegedly saw a "warning light" this month, when inventory began to back up as Galaxy S4 sales slowed. That's apparently prompted the company to cut orders heading into the month of July.

In addition, the company also apparently plans to retire its previous-generation Galaxy S3 handset sooner than originally anticipated, the report said.

Rumors of disappointing sales of the Galaxy S4 have persisted for weeks now. They became so prevalent that the company's chief executive was compelled to comment on the matter last week, suggesting that Galaxy S4 sales have been "fine," without giving specific numbers.

The persistent rumors have also taken a toll on Samsung's stock, a situation not unlike the one Apple faced starting in late 2012. Apple's losses were attributed to investor concerns that iPhone growth was slowing.

Both Apple's iPhone 5 and Samsung's Galaxy S4 compete in the high-end smartphone segment ? a market that industry watchers believe could be reaching saturation. That's helped to fuel speculation that Apple could launch a new low-end iPhone this year to target customers who prefer unsubsidized handsets that are not tied to a new two-year service contract.
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Comments

  • Reply 1 of 47


    That means Samsung is doing great, lots of new products on the pipeline. Again, Apple is doomed. The market is going to reward samsung and punish Apple stock some more.


     


    /Zarkasm

  • Reply 2 of 47
    If true, not surprised, constant references to "flooding" the market are used to describe Samsung's sales strategy. There are consequences to a flood after the initial wave hits.
  • Reply 3 of 47
    jpvnjpvn Posts: 40member
    i say it again.. i still haven't seen anyone with a S4?
  • Reply 4 of 47
    lkrupplkrupp Posts: 9,472member

    Quote:

    Originally Posted by jhromeror View Post


    That means Samsung is doing great, lots of new products on the pipeline. Again, Apple is doomed. The market is going to reward samsung and punish Apple stock some more.


     


    /Zarkasm



     


    Well, yes, of course AAPL will get the shaft on this. Why? Because the analysts will say that the reason for the slowdown in parts orders is due to dropping demand for iPhones, not the S4.

  • Reply 5 of 47
    Hmmmm! Waiting to see what Apple is going to release next, so they can copy it!
  • Reply 6 of 47
    nagrommenagromme Posts: 2,834member
    I take these "anonymous sources" with salt, and I'd believe it more easily if it was re tablets, not phones. But if it's true, I wonder if the "shipped" vs. "sold" distinction, which analysts love to pretend they don't understand, could be coming home to roost for Samsung.
  • Reply 7 of 47
    drblankdrblank Posts: 3,383member

    Quote:

    Originally Posted by jhromeror View Post


    That means Samsung is doing great, lots of new products on the pipeline. Again, Apple is doomed. The market is going to reward samsung and punish Apple stock some more.


     


    /Zarkasm



    Obviously, you didn't read the article.  They are slashing production of a brand new phone that just got introduced.  That's a sign that the S4 isn't selling that well only after a month on the market.

  • Reply 8 of 47


    Samdung is coming up with new models every now and then with slightly tweaked screen size on 6 months period and tell their buyers to buy it breaking 2 yrs contract!  Also is this information correct that Samdung users live in poor areas? If true, this is one more reason! 


     


    I have nothing against poor people but I know poor people make poor choices and their justification is rich people have ego (apple users are egoistic?) lol

  • Reply 9 of 47
    *sigh*

    "The company allegedly saw a "warning light" this month, when inventory began to back up as Galaxy S4 sales slowed."

    When will people actually word this correctly. Samsung doesn't report sales, it reports shipments. The inventory backs up because the carriers are unable to sell the huge number of units they have already been shipped. If Samsung relied upon "sales" data rather than "shipped" data that warning light would have gone off long ago.
  • Reply 10 of 47
    twiselltwisell Posts: 27member


    Could it be that people are actually waiting for the rumored low-cost iPhone instead of buying a GS4 ?

  • Reply 11 of 47
    So when do rumours of a low cost S4 begin? Or is this already covered by the Samsung Grand or whatever?
  • Reply 12 of 47

    Quote:

    Originally Posted by Twisell View Post


    Could it be that people are actually waiting for the rumored low-cost iPhone instead of buying a GS4 ?





    Did you make a new account to ask this q? lol

  • Reply 13 of 47

    Quote:

    Originally Posted by helicopterben View Post


    I have nothing against poor people but I know poor people make poor choices and their justification is rich people have ego (apple users are egoistic?) lol



     


    That... that was awesome. Critical thought FTW. 

  • Reply 14 of 47
    peter02lpeter02l Posts: 85member
    Samdung is coming up with new models every now and then with slightly tweaked screen size on 6 months period and tell their buyers to buy it breaking 2 yrs contract!  Also is this information correct that Samdung users live in poor areas? If true, this is one more reason! 
    I have nothing against poor people but I know poor people make poor choices and their justification is rich people have ego (apple users are egoistic?) lol

    And of course, rich people make good choices, like being born into a rich family.
  • Reply 15 of 47
    drblankdrblank Posts: 3,383member

    Quote:

    Originally Posted by helicopterben View Post


    Samdung is coming up with new models every now and then with slightly tweaked screen size on 6 months period and tell their buyers to buy it breaking 2 yrs contract!  Also is this information correct that Samdung users live in poor areas? If true, this is one more reason! 


     


    I have nothing against poor people but I know poor people make poor choices and their justification is rich people have ego (apple users are egoistic?) lol



    What I notice is that anti-Apple fans usually make excuses, but most of their excuses are not valid reasons.  I think it might be jealousy or they don't have much brand loyalty.  They will buy based on specs and price.

  • Reply 16 of 47
    jungmarkjungmark Posts: 6,870member
    I think this article meant to state: "Apple supplier to cut component orders..." The in small print: "...for its own products. "
  • Reply 17 of 47
    peter02l wrote: »
    And of course, rich people make good choices, like being born into a rich family.

    Like Steve Jobs being born (well, adopted) into Paul Jobs' middle class suburban family. Fact: Apple, Inc. was born in that middle class garage.
  • Reply 18 of 47


    In simple words-


     


    Take away all the money from rich people- they will make back the money, they know the game.


    Give poor people a winning lottery, they will spend it all and might end up in a big disaster but then poor people say, the game is rigged against them.


     


    Dream, Passion and Selection (Decision/Choice) on the way of life matters- BUY SAMDUNG lol  Do I have an ego? People who think yes, are mentally dominated and damaged with full of complexity by outside world- Change this- you will have a much better life!


     


    Buy Apple- Quality matters :)

  • Reply 19 of 47
    twiselltwisell Posts: 27member

    Quote:

    Originally Posted by helicopterben View Post




    Did you make a new account to ask this q? lol



    Yep, this is maybe ridiculous but that's my first step here. English is not my mother tongue, and I'm usually more active in a foreign forum.


     


    I was maybe just pointing the obvious, but I thought the article missed a point, but not by far.


     


    It's a common pattern for apple products that sales decline when a new product is consistently rumored to surface.


    So maybe this time the GS4 is the device suffering from the low-cost iPhone rumor. Currents Android users might want to see what's coming before renewing their smartphones...

  • Reply 20 of 47
    jd_in_sbjd_in_sb Posts: 1,600member

    Quote:

    Originally Posted by drblank View Post


    Obviously, you didn't read the article.  They are slashing production of a brand new phone that just got introduced.  That's a sign that the S4 isn't selling that well only after a month on the market.





    Obviously, you didn't read the end of the post which indicates sarcasm.

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