Initial pre-orders for Samsung Galaxy S9 reportedly down compared to Galaxy S8 sales

Posted:
in General Discussion edited March 10
Samsung's latest flagship smartphone, the Galaxy S9, may be underperforming compared to the previous model, with a report on South Korean sales and an analyst's pre-order note suggesting the main rival to Apple's iPhone's launch is lower than the electronics giant anticipated.




Arthur Wood Research analyst Jeff Johnson's note to investors seen by AppleInsider suggests the pre-orders for the Galaxy S9 are down approximately 50 percent compared to those of the Galaxy S8. Johnson writes the pre-orders are "significantly underperforming pre-launch expectations of 10 percent to 15 percent growth."

South Korea, Samsung's home country, is also seemingly disinterested in the Galaxy S9, with Yonhap News sources also report that the first-day sales performance in the country was around 70 percent that of the S8. While the Galaxy S8 is said to have racked up 260,000 pre-orders last year, only 180,000 units of the S9 appear to have been pre-ordered this year.

Johnson suggests the lower orders is a sign of customers "upgrading [at] a much slower pace as features are falling on deaf ears." The analyst suggests "smartphone sales are starting to decline at an accelerating rate," impacting not only Samsung's flagship mobile device, but the industry as a whole.

Calling it a problematic trend, Johnson believes this could be an issue for companies like Apple and legacy component producers in smartphone supply chains, identifying Broadcom, Qualcomm, Cirrus Logic, and Skyworks Solutions as potential victims.

"We think AAPL supply chain investors are already on edge given what's been reported thus far," Johnson writes, "but we fear that smartphone demand over the next couple of quarters is poised to disappoint." The analyst predicts this will cause carriers to produce "more aggressive promotions" in order to shift excess inventory.

More data on the Galaxy S9 order situation is expected over the next week.

The Galaxy S9 received mixed reviews from critics this week, with a similar design to its predecessor and underwhelming new features overshadowing the specification improvements.
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Comments

  • Reply 1 of 34
    maestro64maestro64 Posts: 4,101member
    I really think this is a Samsung issue, this is what happens when all you can do is copy, and when you fail to copy, people are not interested in your product.
    tommo_ukmagman1979aegeanquenchmikethemartianchialkrupprepressthisRobPalmer9jbdragon
  • Reply 2 of 34
    tmaytmay Posts: 2,648member
    maestro64 said:
    I really think this is a Samsung issue, this is what happens when all you can do is copy, and when you fail to copy, people are not interested in your product.
    Look for Apple to end up with even higher revenue and profit share due to the collapse of Android OS device prices in the coming race to the bottom. Samsung will be wishing for $250 ASP of last quarter, but probably seeing around $200 for the near term.
    edited March 10 tommo_ukracerhomie3magman1979chiawatto_cobrajony0
  • Reply 3 of 34
    SoliSoli Posts: 7,337member
    I don't see anything (yet) that would point to any specific anti-Samsung shift to account for a drop in sales. With the smartphone market being mature it's going to occur. When it's happened with Apple I also didn't think it was a nail in the coffin for their business, either. It happens.
    gatorguycornchipmarsorrydws-2rogifan_newrepressthisBubbaTwojony0
  • Reply 4 of 34
    deminsddeminsd Posts: 40member
    There will be a point (and it doesn't matter if it's Android or Apple) that people are going to get tired of shelling out close to $1000 for a phone that is only marginally better than the one they have now.  Before, there were deals and trade-in offers by the carriers that allowed people to get a phone for half price or even free, but now the deals are terrible.  Every thing is "with trade in" and they give you a crappy value for your flagship phone, and then make you wait 24 months to get all your trade-in value.  It will happen with Apple sooner or later when they just start making minor changes and people keep what they have (ie., the iPhone 8).  
  • Reply 5 of 34
    The difference is that the iPhone X was a paradigm leap forward, hence it being the world’s best selling smartphone last quarter, and doubling market share in South Korea at Samsung’s expense, and the S9 is just like an ... S8. Apple have 51% of the market by revenues on only 17% market share globally. Their ASP is triple Samsung’s because their phones are that much better. And you know what? People who love their phones - ie. the 20% of the smartphone market that really care about the product and have a tactile relationship with it and the brand will carry on buying $1000-1400 phones because they can get them on contract paying little more on a monthly basis over two years than their old-gen iPhone. Samsung? They don’t innovate. They have no differentiating features. They have no excitement. Worst for them, they have no control over the software, or the chipset which is chiefly just generic snapdragon processors and other controllers bolted together to try and work as best it can with a Frankenstein version of android. Samsung have blown it spectacularly. Apple are even moving OLED production to LG and CPUs to TSMC. Orders for the S9 are 50% lower than Samsung expected because it’s late, it’s boring, it’s expensive, and compared to an iPhone X which is truly innovative and fresh, looks like last year’s pro, queen looking for attention while wearing a new but badly fitted dress. 2018 will be noted as the year Android OS forked, google produced their own proprietary version vertically integrated with their own hardware (which unlike Apple they don’t have the expertise to design and pull off) and the fracturing of the Android army. It’s toast. The Technology in the iPhone X is at least two years ahead of anything else. While Samsung wails about the S9 Apple are gearing up to launch three new top end phones and possible a new low end model too. You know that OLED production cut Samsung we’re blaming Apple for? A) part of the reason was due to Apple moving to LG and b) the other SA sad pathetic reason is Samsung overproduced OLED panels for their own phones and expecting other manufacturers to follow suit. Well, they didn’t, and Samsung’s sales are only 50% of the target, yet they blame Apple for their underperformance. Odd that that smartphone selling the most units in the entire world - the iPhone X - breaking all records for units and price and ASPs should somehow be a failure? Erm, maybe Samsung just totally screwed up and lost a shit load of money on bad manufacturing forecasts and producing a lousy next gen phone which was more like your last year’s phone. Apple jumping for, 16% to 29% of the market in South Korea with their new highest-value phones, and Samsung losing 9% to 51% of the market across their entire product range, in their home market, tells you all you need to know.. South Korea is bored of Samsung devices and wants iPhones. The writing is on the wall. Android was a nice idea but it’s broken and like Humpty Dumpty won’t ever be quite put back together again.
    edited March 10 radarthekatracerhomie3macseekerquenchrepressthisbb-15LukeCaged_2watto_cobra
  • Reply 6 of 34
    If Apple releases the IPhone SE and a larger version of SE, they could mop up Samsung’s market share.

    Google not upgrading the OS on their own devices after 2 years is a disaster.  The Android ecosystem is a fragmented mess.

    This world be a perfect time for Amazon to disrupt the established Android players.  All the have to do is have guaranteed updates for 4 years.

    I’m not going to say Android sucks, etc. it’s a pretty good OS.  But the same mess continues year after year.  It’s difficult to consider Android a suitable alternative to Apple, especially in the workplace.
    Anilu_777crossladrepressthisLukeCage
  • Reply 7 of 34
    deminsd said:
    There will be a point (and it doesn't matter if it's Android or Apple) that people are going to get tired of shelling out close to $1000 for a phone that is only marginally better than the one they have now.  Before, there were deals and trade-in offers by the carriers that allowed people to get a phone for half price or even free, but now the deals are terrible.  Every thing is "with trade in" and they give you a crappy value for your flagship phone, and then make you wait 24 months to get all your trade-in value.  It will happen with Apple sooner or later when they just start making minor changes and people keep what they have (ie., the iPhone 8).  

    And when that happens Apple can make a fortune selling 200+ million iPhones every year to people upgrading their 3 year old devices.
    Soliracerhomie3quenchanalogjackStrangeDaysbb-15jbdragonwatto_cobra
  • Reply 8 of 34
    deminsd said:
    There will be a point (and it doesn't matter if it's Android or Apple) that people are going to get tired of shelling out close to $1000 for a phone that is only marginally better than the one they have now.  Before, there were deals and trade-in offers by the carriers that allowed people to get a phone for half price or even free, but now the deals are terrible.  Every thing is "with trade in" and they give you a crappy value for your flagship phone, and then make you wait 24 months to get all your trade-in value.  It will happen with Apple sooner or later when they just start making minor changes and people keep what they have (ie., the iPhone 8).  
    It's already happened with Apple according to one recent survey stating the life of the average iPhone now is around 4 years. Yet, with 1.3 billion iPhone users out there in the wild, Apple has continued to churn out over 90% of the smartphone industry's profits. Apple's installed base is set to grow further as they continue to release cheaper tablets and MacBooks to attack the low end markets. This will tend to bring even more users into the platform and grow the annual upgrade parade revenues. One stick being thrown in the wheel is whether the $25 battery replacement deals will prolong the life of iPhones even further. Personally, from the folks I"ve talked to, most users are not likely to keep their phones more than four years even with a battery change. However, if it does have this effect, then the iPhone users will probably just use the additional bucks in their pockets to grab another Apple product like the Watch or HomePod, etc. This only adds to their ecosystem effect and locks them into the iPhone even stronger. Either way, Android seems to be in for long term deterioration of their mobile market share and Apple is set for more growth in "Services & Other Revenues".
    racerhomie3kudutmayMacProbb-15watto_cobra
  • Reply 9 of 34
    I would not use that crap ,even if Samsung gifted me one. I would ship it right back to them.
    anton zuykovwatto_cobra
  • Reply 10 of 34
    radarthekatradarthekat Posts: 2,375moderator
    There might be a bit of good news in the fact people are keeping their phones longer.  And that is that if you know you’ll be using the same smartphone for three or more years, you might be willing to invest more to get the best phone you can afford.  And that means higher storage capacity, a more premium
    model, and maybe larger, higher quality display.  And perhaps equally important to hardware specs is upgradeability.  You’ll want a smartphone that can stay current with new capabilities in software and apps.  And finally, you’ll want to know your phone will retain its value so that you can get back some of what you paid when you eventually replace it.  All of this, of course, points to iPhone for more users.
    shrave10macseekerAnilu_777supadav03chiaracerhomie3tmayrepressthisbb-15LukeCage
  • Reply 11 of 34
    analogjackanalogjack Posts: 1,022member
    This is as I predicted when I said a long time ago to those arguing the curved screen was brilliant design. It's a bad design due to reflections and it's a design that goes stale very quickly and worst of all for Samsung once they've gone down that path there's nowhere else to go. They can't go more curved. A useless slo mo that can only capture a fifth of a second and a slightly brighter max aperture that does nothing that can't be accomplished with better processing, plus a really childish looking animoji that doesn't really animate properly was never going to cut it. But I'm looking forward to next year when it will be worse and by that time Apple will have firmly established FaceID as the security system of the future. 

    I'm amazed that Samsung is actually getting praise for ever so slightly improving the fingerprint sensor from the ludicrous back of the device to a different ludicrous position on the back  of the device. They should have stuck to slavishly copying Apple, now they taken a wrong turn and it's only going to get worse. 
    racerhomie3watto_cobra
  • Reply 12 of 34
    chasmchasm Posts: 581member
    My guess at what is happening wrt specifically the pre-orders: just like for Apple, the rumour market went wild with speculation for stuff that didn't materialize, and this resulted in "disappointment" from fans (for things that were always just speculation). Other factors that certainly contributed to this slump came from the issues others here have pointed out: a price increase, not hugely different from the previous model, and with the death of subsidies/contracts people are holding on to their smartphones longer. Some of this hurts Apple just as much as it will hurt Samsung in particular this year, but has Apple focuses on maintaining a high profit margin, it harms Apple far less than it will Samsung in the short term.
    watto_cobra
  • Reply 13 of 34
    tommo_uk said:
     Android was a nice idea but it’s broken and like Humpty Dumpty won’t ever be quite put back together again.
    Whilst I agree with you and even Google seems to be starting to realise the failings of Android the fact is, Apple needs Android.

    If Android phones were not taking more than 50% of the worldwide market then all sorts of Monopoly investigations would start happening. While there are several makers of android and they take the volume (by numbers) then the politicians are kept under wraps.
    If Android dops to 40% of the market, the free ride that Apple has had will stop almost overnight.
    The last thing I think any APPL stockholder wants is governement intereference in pricing etc.

    If there was a company that needs looking into for its domineering practices then I'd take a look at Amazon. Who/where is the competition for that Behemoth then?
    racerhomie3watto_cobra
  • Reply 14 of 34
    BluntBlunt Posts: 198member
    Analyst talk… Well if i do not trust them about Apple why should i trust them now? If they are wrong they blame it on the compagny they were talking about: they did not meet expectations.
    watto_cobra
  • Reply 15 of 34
    Maybe it is just too fast.. i mean almost 10 months or a year..BAM! new model is introduced  and released.. nothing much so different between s8 and s9.  And.. another 8 month from now, we will hear the rumors, leak, insight info about the new S10.. lol
    watto_cobra
  • Reply 16 of 34
    dewmedewme Posts: 1,332member
    Not a Samsung phone fan, although I really do like their memory and display products, but this downturn may be a trend as higher end smartphones in general have reached a plateau in capability and lifespan. Sure, there is a lot of room for innovation and growth and reliability improvements, but a lot of folks are quite happy with their current smartphones for longer than the former 2-year upgrade cadence that dominated upgrades during the so-called "subsidized" phone era. In reality the subsidies were no different than extended payment plans but psychologically some people were really duped by the marketing and neglected to factor in the TCO over the terms of the contract. In any case, the end of subsidies, the plateau in functionality, and pretty decent quality & reliability has landed us pretty deep either in the late adopter or the leading edge of the cash cow part of the curve. It's looking more cow-ish with each new premium smartphone release, but we'll see.
    watto_cobra
  • Reply 17 of 34
    jcs2305jcs2305 Posts: 392member
    deminsd said:
    There will be a point (and it doesn't matter if it's Android or Apple) that people are going to get tired of shelling out close to $1000 for a phone that is only marginally better than the one they have now.  Before, there were deals and trade-in offers by the carriers that allowed people to get a phone for half price or even free, but now the deals are terrible.  Every thing is "with trade in" and they give you a crappy value for your flagship phone, and then make you wait 24 months to get all your trade-in value.  It will happen with Apple sooner or later when they just start making minor changes and people keep what they have (ie., the iPhone 8).  
    AT&T and Sprint had buy one give one deals for iPhone 8 and X for months? T-Mobile has a deal to buy an iPhone X and get a $700.00 rebate with any brand trade in.  If you think the carriers aren't going to find ways to get you to buy new phones more often even with subsidies being gone, you are sadly mistaken.  On another note I have never gotten crappy value, or trade with any of my iPhones. I have been able to easily sell them and gotten good money for them.  
    shrave10watto_cobra
  • Reply 18 of 34
    foggyhillfoggyhill Posts: 4,663member
    jsmythe00 said:
    I would not use that crap ,even if Samsung gifted me one. I would ship it right back to them.
    I thought that.. Right up until IPX came out and decided to give the note 8 a try. 

    After three months...IPX and iOS 11 is crap.

    It's been what 5 months and apple IS STILL relaesinf bug fixes. 10 updates to iOS 11 to fix bug after bug.  What did you say about crap
    They've done that BEFORE., essentially all versions since IOS ! and i so you are full of fracking dung and here espressely to whine, I'm going to guess you got a MacRumor alias cause you got the profile.

    And your extreme reaction makes me think you don't actually fracking seen a Iphone X ever in action, or ever owned an Apple device, a whining poser.
    edited March 11 StrangeDaysbb-15watto_cobra
  • Reply 19 of 34
    wood1208wood1208 Posts: 1,404member
    If initial orders are problematic for Galaxy S9/Plus than think of further down in a year when others like LG, Chinese bring there newer models. Than in September, the mighty Apple's trio of iPhones coming out and who knows what else Apple is planning to offer.
    watto_cobra
  • Reply 20 of 34
    tommo_uk said:
     Android was a nice idea but it’s broken and like Humpty Dumpty won’t ever be quite put back together again.
    Whilst I agree with you and even Google seems to be starting to realise the failings of Android the fact is, Apple needs Android.

    If Android phones were not taking more than 50% of the worldwide market then all sorts of Monopoly investigations would start happening. While there are several makers of android and they take the volume (by numbers) then the politicians are kept under wraps.
    If Android dops to 40% of the market, the free ride that Apple has had will stop almost overnight.
    The last thing I think any APPL stockholder wants is governement intereference in pricing etc.

    If there was a company that needs looking into for its domineering practices then I'd take a look at Amazon. Who/where is the competition for that Behemoth then?
    While I agree that an OS monopoly sets the stage for more scrutiny, there is absolutely no danger there as Android's market share is quite a bit more than 50%.
    bb-15
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