Android Circuit: Galaxy S6's Sales Disaster

[ControlD]

I pay full price, but only $40/mo. Believe me they cover the full retail price of the phone and a whole lot more in what you pay monthly.

I agree with you. It's just that I don't think most people in the US market look at or even know what the full retail price of a phone is. I see a lot of people arguing that the high price of the S6 is a problem but to the average consumer that phone is $200, or pretty much the same price as any other new flagship phone. I don't think the retail price explains the slow sales of the S6, at least in the US. I know next to nothing about the international market though. There retail price is probably a bigger deal.

I haven't looked at any numbers, but is this common for all Android flagship phones or is it just Samsung? As I look around at people using phones in the wild I see a LOT more LG phones than I used to. I wonder if some of this is just that the other handset manufacturers have simply caught up. Also, I know the LG phones tend to get discounted faster than the Samsung models. The Note 4 is still a $299 upgrade while the G3 was $0.01 not terribly long after release. I see a bunch of the G3s in people's hands now probably because it is essentially a "free" upgrade.

 

[Bock]

What does it matter if there are subsidies or not? At equivalent pricing the majority are still going for Apple, plain and simple. For one, better resale value down the line.

This might be a bigger thing that most of you realize. On contract, you upgrade every 2 years. A 2 year old iphone 5s sells for more than $200 right now on ebay or those phone trade in websites or craiglist or any cellphone repair shop at the mall. When the next iphone comes out, you just upgrade for a very low out of pocket price.

 

[StrangerGuy]

I agree with you. It's just that I don't think most people in the US market look at or even know what the full retail price of a phone is. I see a lot of people arguing that the high price of the S6 is a problem but to the average consumer that phone is $200, or pretty much the same price as any other new flagship phone. I don't think the retail price explains the slow sales of the S6, at least in the US. I know next to nothing about the international market though. There retail price is probably a bigger deal.

I haven't looked at any numbers, but is this common for all Android flagship phones or is it just Samsung? As I look around at people using phones in the wild I see a LOT more LG phones than I used to. I wonder if some of this is just that the other handset manufacturers have simply caught up. Also, I know the LG phones tend to get discounted faster than the Samsung models. The Note 4 is still a $299 upgrade while the G3 was $0.01 not terribly long after release. I see a bunch of the G3s in people's hands now probably because it is essentially a "free" upgrade.

Over here in Singapore, we have a huge off-contract "full sticker price" phone scene (we also have Zenfone 2, Xiaomi, Moto, available here) the prices tells one a lot about the demand, and we at least as rich as the U.S.

The price of the iPhone 6 has remained virtually unchanged since launch, while the S6 originally was priced the same with the IP6 but it has already dropped by a massive 20% despite being released much later.

The massive bulk of existing Samsung users are using devices from their pre-2014 lineup with barely any S5/Note 4 in the mix much less the S6, but on the Apple side the majority have already upgraded to the IP6.

I just really can't see how Samsung is going to survive here past 2015, much less much poorer countries like India and China.

 

[bradly1101]

I agree with you. It's just that I don't think most people in the US market look at or even know what the full retail price of a phone is. I see a lot of people arguing that the high price of the S6 is a problem but to the average consumer that phone is $200, or pretty much the same price as any other new flagship phone. I don't think the retail price explains the slow sales of the S6, at least in the US. I know next to nothing about the international market though. There retail price is probably a bigger deal.

I haven't looked at any numbers, but is this common for all Android flagship phones or is it just Samsung? As I look around at people using phones in the wild I see a LOT more LG phones than I used to. I wonder if some of this is just that the other handset manufacturers have simply caught up. Also, I know the LG phones tend to get discounted faster than the Samsung models. The Note 4 is still a $299 upgrade while the G3 was $0.01 not terribly long after release. I see a bunch of the G3s in people's hands now probably because it is essentially a "free" upgrade.

My first real smartphone was the Galaxy S3 ($499 off contract) which was very nice and lasted a long time until just recently when my carrier switched networks. The S3 got me a $300 trade in and I got a Galaxy Avant with $100 left over. Now I'll never understand why I thought I needed a 'flagship' phone. I actually like the lower res screen; all text, fields and forms are very readable. And with a 64GB SD card slot, removable battery and NFC it's got more than I'll use it for. My partner got one too and he likes it (coming off an older iPhone - Yay! I don't have to have iTunes installed anywhere anymore!

 

[dawheat]

Over here in Singapore, we have a huge off-contract "full sticker price" phone scene (we also have Zenfone 2, Xiaomi, Moto, available here) the prices tells one a lot about the demand, and we at least as rich as the U.S.

The price of the iPhone 6 has remained virtually unchanged since launch, while the S6 originally was priced the same with the IP6 but it has already dropped by a massive 20% despite being released much later.

The massive bulk of existing Samsung users are using devices from their pre-2014 lineup with barely any S5/Note 4 in the mix much less the S6, but on the Apple side the majority have already upgraded to the IP6.

I just really can't see how Samsung is going to survive here past 2015, much less much poorer countries like India and China.

It's a shame more folks in your country didn't give the Note 4 a shot. IMO it was the best phone in the 2H of 2014 and compares favorably even with the best 2015 devices.

Normally the newest and best tempt me, but nothing makes me consider selling mine, probably until the Note 5 comes out.

 

[blairharrington]

I actually like the lower res screen

Why?

Also, you don't have to use iTunes if you use an iPhone.

 

[Commodus]

Over here in Singapore, we have a huge off-contract "full sticker price" phone scene (we also have Zenfone 2, Xiaomi, Moto, available here) the prices tells one a lot about the demand, and we at least as rich as the U.S.

The price of the iPhone 6 has remained virtually unchanged since launch, while the S6 originally was priced the same with the IP6 but it has already dropped by a massive 20% despite being released much later.

The massive bulk of existing Samsung users are using devices from their pre-2014 lineup with barely any S5/Note 4 in the mix much less the S6, but on the Apple side the majority have already upgraded to the IP6.

I just really can't see how Samsung is going to survive here past 2015, much less much poorer countries like India and China.

I don't know that Samsung is doomed, but it is facing a problem that won't have an easy fix... and in the worst case, might never be completely fixed. On the low end and mid-range, it's going up against Chinese companies that have inherent home turf advantages in manufacturing and reputation. On the high end, it's facing off against Apple, which spent decades building up its brand image and creating a truly unique, independent ecosystem. Samsung's real advantage right now is its component business -- it can build high-powered hardware that most rivals would never get.

 

[senseamp]

I don't know. I honestly don't know one single person (personally, forums are another matter) that pays full price for a cell phone. Not one. Almost everybody in the US market at least is paying the same $200 subsidized price for whatever flagship phone they fancy when their upgrade comes up. I would be interested to see what the numbers for the S6 are in the subsidized market. I have seen one person with a S6, but a ton with the iPhone 6.

$200 subsidized is too much for an Android phone where there is no barrier to entry and $200 unsubsidized gets you a decent device. Subsidized should be free, maybe even with $100-200 MIR.

 

[ControlD]

$200 subsidized is too much for an Android phone where there is no barrier to entry and $200 unsubsidized gets you a decent device. Subsidized should be free, maybe even with $100-200 MIR.

Perhaps, although I think the US market has been conditioned to paying that price for a top of the line phone. And paying out of wazoo for two years of service on top of that. It's good to be a wireless service provider.

 

[bradly1101]

Why?

Also, you don't have to use iTunes if you use an iPhone.

On higher res screens I usually have to zoom in on some text that doesn't follow the larger font settings. And you can't zoom in on some text and fields. And the battery lasts longer. I need my phone to be usable not pretty.

I didn't know you could update iOS without iTunes. That's cool and all but I'm happy to be rid of any 'iLife' products.

 

[KK]

if they'd make an s6 version with an sd slot and a removable battery, they'd open themselves up to another batch of people. People that have supported them in the past, but now are pissed they've folded into apple's way of thinking.

 

[WelshBloke]

I don't know that Samsung is doomed, but it is facing a problem that won't have an easy fix... and in the worst case, might never be completely fixed. On the low end and mid-range, it's going up against Chinese companies that have inherent home turf advantages in manufacturing and reputation. On the high end, it's facing off against Apple, which spent decades building up its brand image and creating a truly unique, independent ecosystem. Samsung's real advantage right now is its component business -- it can build high-powered hardware that most rivals would never get.

Well Samsung seem to be selling something anyway.

http://www.phonearena.com/news/Top-...icture-Chinese-phone-makers-take-over_id69643

 

[ControlD]

Well Samsung seem to be selling something anyway.

http://www.phonearena.com/news/Top-...icture-Chinese-phone-makers-take-over_id69643

Come on now, you aren't following the script. Samsung is DOOMED. Dead in the water.

I think we have all become slaves to quarterly profit reports.

 

[WelshBloke]

Come on now, you aren't following the script. Samsung is DOOMED. Dead in the water.

Oops sorry.

Doomed.

(prizes for any non Brit that gets that cultural reference!)

I think we have all become slaves to quarterly profit reports.

I think that people are so invested in thinking of this like supporting a team they think that loudly cheering will somehow affect reality.

 

[Artdeco]

Sony and Microsoft bumped out of the top ten, wow...

 

[WelshBloke]

Sony and Microsoft bumped out of the top ten, wow...

Microsoft don't make a lot of hardware so it's understandable that they'd be in 'others' but Sony is getting mullered. Its a shame as their hardware is solid it just really needs a refresh.

 

[postmortemIA]

Microsoft don't make a lot of hardware so it's understandable that they'd be in 'others' but Sony is getting mullered. Its a shame as their hardware is solid it just really needs a refresh.

Sony coulda shoulda be that premium Android brand, it is their own fault for letting often inferior Samsung take the cake.

 

[poofyhairguy]

Samsung's real advantage right now is its component business -- it can build high-powered hardware that most rivals would never get.

That is what they did with the S6. In previous years (since 2013) the flagships were pretty similar on computing hardware- the SoCs were close if not the same, the screens were close, and the battery life each generation were similar. Often you picked based on phone specific features like a metal constructions, SD card slot, camera, etc.

But this year Samsung jumped everyone- the screen is the best, the SoC is far above anything else, the storage speed is insane, etc. If I needed a new phone right now my love for SD cards can't overcome the truth that any Android phone subsidy that is not for a S6 this year is being wasted. It is that far ahead of the pack.

If the S6 is a flop, and being better doesn't matter, we might have proof we hit a good enough point with phones. The trick will be if the entire market for Android is down, or if some other device steals the S6's thunder.

 

[Oyeve]

if they'd make an s6 version with an sd slot and a removable battery, they'd open themselves up to another batch of people. People that have supported them in the past, but now are pissed they've folded into apple's way of thinking.

I am one of them. This is the first Galaxy phone I am not getting, primarily because they removed the SD slot.

 

[Anubis]

if they'd make an s6 version with an sd slot and a removable battery, they'd open themselves up to another batch of people. People that have supported them in the past, but now are pissed they've folded into apple's way of thinking.

this group is a lot smaller then most think

 

[kaerflog]

When the S6 came out, I really gave it a hard look as I am looking to upgrade my G2 after ~2 yrs.
2 things that deterred me from getting it.
1) Price. I am pass the point of ever spending more than $600 for phone now. I've set a limit of $500 and even that is a stretch
2) Battery life. No way I would settle for a phone that has less battery life than the S5 or the G2.

Lets face it, the days of Samsung being able to charge $600+ for a phone is close to over.
The problem is Android. Why am I going to spend $600+ for an Android phone when there are alternatives for much much less.
For example. A brand new G2 can be had for <$250 or even $200. Same size phone, slightly bigger screen, same battery life, has all the same functions, runs Lollipop, might be just a tad slower but you wouldn't really notice it. Theres is absolutely no need to upgrade unless I just have disposable income to spend which a lot of American do not.
The same thing can't be said about the iPhone. If you want a 4.7" screen phone that runs iOS, you have 1 choice. Same thing with a 5.5" screen.
It will get worst for Samsung when the Chinese starts to make a dent in the US market.
Speaking of Chinese, they are the worlds biggest market and there is ZERO chance of Samsung making any impact in that country. Theres another problem right there.
I'm seeing all the new Chinese phones that are coming out and some have the premium look and feel that are just as good as Samsung if not better.
Its just a matter of time before they will bring them to America in masses.
Remembered when Samsung and LG were JUNK Korean products that nobody wanted ?? It was all Sony, Panasonic, Mitsubishi, etc.....Its history repeating itself.

 

[poofyhairguy]

Its just a matter of time before they will bring them to America in masses.

We will see. The North American market so far doesn't trust those brands, especially flagship models.

Part of the problem is differing tastes. Americans want a pocket computer, the Chinese want a pocket status symbol which a lot of the time translates into "make people think I have an iPhone." Too many Chinese phones have LOCKED (yes as in you can't replace it) iOS-ripoff launchers. We barely accept Touchwiz, we won't accept that.

The Chinese companies need to do what LG did- win a Nexus contract. No one here even talked about LG until after the Nexus 4 and 5. That set them up to get the G2 and G3 noticed by the Android journalists, and we all take those offerings very seriously DESPITE the skins LG has. The Nexus program gives them software we want so they can try to impress on hardware. Those impressions will stick to their non-Nexus products if LG is a guide.

 

[biostud]

Maybe people are starting to realize that they don't need gazillion of new useless blinky features, but would rather have a "simple" thing as +50% battery life.

 

[ControlD]

Maybe people are starting to realize that they don't need gazillion of new useless blinky features, but would rather have a "simple" thing as +50% battery life.

I agree with this whole heartedly. Also, it seems like every flagship being released has at least one glaring weakness. Some have crappy battery life. Some have terrible audio or sub par cameras. Maybe Apple really is the only company that can put the whole package together, although even the new iPhone is crippled with a lack of memory.

Maybe the phone manufacturers should just concentrate on making a sold phone rather than adding 1000 gimmicks we will never use in the first place.

 

[ControlD]

We will see. The North American market so far doesn't trust those brands, especially flagship models.

Part of the problem is differing tastes. Americans want a pocket computer, the Chinese want a pocket status symbol which a lot of the time translates into "make people think I have an iPhone." Too many Chinese phones have LOCKED (yes as in you can't replace it) iOS-ripoff launchers. We barely accept Touchwiz, we won't accept that.

The Chinese companies need to do what LG did- win a Nexus contract. No one here even talked about LG until after the Nexus 4 and 5. That set them up to get the G2 and G3 noticed by the Android journalists, and we all take those offerings very seriously DESPITE the skins LG has. The Nexus program gives them software we want so they can try to impress on hardware. Those impressions will stick to their non-Nexus products if LG is a guide.

The latest rumors floating around have Huawei making a 5.7" Nexus device for late 2015.