Verge: Samsung Galaxy S5 sold 40% fewer units than anticipated

[Bateluer]

http://www.theverge.com/2014/11/24/7273817/samsung-management-shakeup

A report in The Wall Street Journal claims that Samsung's Galaxy S5 flagship phone has performed below expectations. The S5 is said to have sold 12 million units in its first three months on sale; roughly 4 million fewer than its predecessor and overall around 40 percent fewer than projected. Sales were said to be down over 50 percent in China, with the US the only major market where sales actually increased. The US is, however, Samsung's biggest market.

Ouch.

Though it annoys me when someone claims there's no difference between the GS4 and GS5, completely ignoring the jump to the Snapdragon 800, the fact remains there's very little the GS5 can do that the GS4 cannot. Most users feel very little reason to upgrade in this situation.

 

[StrangerGuy]

Between the S4 and S5 there was also a meteoric rise of capable low-cost devices like Moto G which does Android better than Samsung. And for the same reason Samsung need to suck it up and acknowledge their brand name and marketing alone will not save them if they keep making terrible budget phones to fight the <$200 Android competition that also offers more quality in hardware AND software at any price point.

 

[Kaido]

Though it annoys me when someone claims there's no difference between the GS4 and GS5, completely ignoring the jump to the Snapdragon 800, the fact remains there's very little the GS5 can do that the GS4 cannot. Most users feel very little reason to upgrade in this situation.

Doesn't the GS5 add waterproofing standard, which you needed the GS4 Active to get previously?

Although IRL, most people I know have said "meh" to the GS5 & have gone with a 3 or 4 thanks to the pricing.

 

[Bateluer]

Doesn't the GS5 add waterproofing standard, which you needed the GS4 Active to get previously?

True, it does. But the waterproofing isn't a top feature for most people. Water proofing wasn't on my list really when I bought my Z3.

 

[Red Storm]

I don't feel bad for Samsung, they've been at the top for quite a while, and this is good news for other Android competitors.

 

[GregMal]

So when are the prices coming down.......heh.....don't hold your breath....

 

[blairharrington]

Good. I hate the S5. Exactly what Samsung needs. A reality check.

 

[Ketchup]

Hopefully that means I can get an even better price on it when I upgrade next year.

 

[jpeyton]

If Samsung just repackaged an LG G3 with Touchwiz and their logo, they would have hit their numbers.

The S5's design blows.

 

[dawheat]

The S5 IMO is a much better phone than the S4 which shouldn't have sold as well as it did. For the S4 - battery life pre-KitKat was bad, low light camera performance was bad, it introduced a ton of poorly executed bloat, and it had a cheap feeling build with a glossy plastic back.

The S5 got significantly better in many areas - battery, camera, screen, improved software/less bloat, waterproofing. If it had the design/build of the Alpha, I think it would have been a strong overall choice for most users.

I do expect Samsung to pull out the stops for the S6 and for it to be an impressive phone.

 

[Ketchup]

Good. I hate the S5. Exactly what Samsung needs. A reality check.

I don't want to sound argumentive here (because I really don't know), but the reviews looked pretty good. What are the issues with this one? I sure don't want to be stuck with a bad phone for 2 years.

 

[Squeetard]

Still buying S4's here at work. The rep told me that Samsung got spanked by Google on the s4 and was told to get more in line with other android phones so the S5 is more vanilla android than the S4.

 

[blairharrington]

I don't want to sound argumentive here (because I really don't know), but the reviews looked pretty good. What are the issues with this one? I sure don't want to be stuck with a bad phone for 2 years.

It's not a bad phone. It's just very blah. Same crap plastic bezel. TouchWiz needs a lot of work. It's larger, heavier. Flimsy flap. It's just so uninspiring IMO. I think Samsung will make the right step forward given the metal frame of the Alpha and Note 4.

 

[openwheel]

People have too much expectations. That's the problem.

 

[Ketchup]

It's not a bad phone. It's just very blah. Same crap plastic bezel. TouchWiz needs a lot of work. It's larger, heavier. Flimsy flap. It's just so uninspiring IMO. I think Samsung will make the right step forward given the metal frame of the Alpha and Note 4.

Thank you. I have an Otter BOX on my S III and I can't imagine having another phone without it. It has saved my phone more than once.

 

[poofyhairguy]

People have too much expectations. That's the problem.

The only reason we expect more is because other companies are providing more, in the way of build materials (HTC), software (Motorola), or value (LG). Samsung wants to sell us devices made of crap materials, gimped software, with a "Galaxy tax" on top (once you get out a couple of months).

The "problem" isn't the expectations. The problem is Samsung not meeting those expectations. And I think Samsung knows that. Not only is the Note 4 made out of better materials, but the Touchwiz on it is less offensive than on my S4.

Also I think Samsung knows that the country-sustaining profits they once had will only come again if THEY invent the next iPhone device that changes everything. When I look at Samsung in 2014, I see a company reaching out into wearables and VR with the hope that it will stumble upon the real "Next Big Thing" that keeps the profit party going. If they can't find it, Samsung's mobile division in 2020 will be a fraction of the current beast.

 

[lopri]

It is not difficult to imagine why Apple do so well in China.. (wasn't there someone who actually committed a murder or something for the money to buy iPhone 5S?)

 

[blankslate]

I looked at the Galaxy Alpha and yes it felt a lot nicer with the metal frame.

I hope that Samsung doesn't get rid of the removable back panel that allows for a user replaceable battery and mSD card expansion.


....

 

[AznAnarchy99]

The upgrade from an S4 to an S5 felt like an incremental upgrade such as from an iPhone 5 to 5s.

 

[DeathReborn]

I did look at the S5 but for the upgrades over the S4 (let alone the S3 I was using) just couldn't justify a 40%+ increase in contract price. In the end I got a Note 4 for the same contract price as a S5.

The extra competition; particularly in China, hasn't helped neither has the resurgence of HTC, LG & Sony.

 

[wilds]

The S5 isn't a bad phone.... But it doesn't have a lot of differentiating features from other flagships and previous generations. Its a great phone for users wanting expandable storage and battery as well as plenty of accessories.

 

[Commodus]

It's a two-pronged problem for Samsung, really.

The main issue is China: it's hard to get locals buying Samsung phones when companies like Huawei and Xiaomi have a home turf advantage (in both manufacturing and loyalty) that lets them undercut their Korean rival on just about every level. It doesn't help that Samsung's budget phones usually don't strike a good price/performance balance... heck, it actually released some budget phones this year that were slightly worse in a few respects than their predecessors.

At the other end is, well, Apple. As much as some Android fans might hate to admit it, a lot of people got Galaxy S and Note phones simply because they couldn't get large iPhones. Well, now they can. We'll have to see how that pans out in the long run, but I'm sure there are a few Samsung executives who stay awake at night realizing that they now have to do more than just compete on specs and copy their rivals.

 

[Dari]

I read that WSJ article this morning. Sales dropping 50% in China in one freaking year is unheard of. This is really really bad. China is supposed to be the market everyone, Samsung included, looks to for growth. A 50% drop should mean heads should roll in Samsung China, not necessarily anywhere else. The head of Samsung China must give really good head if he still has his job.

 

[StrangerGuy]

It's a two-pronged problem for Samsung, really.

The main issue is China: it's hard to get locals buying Samsung phones when companies like Huawei and Xiaomi have a home turf advantage (in both manufacturing and loyalty) that lets them undercut their Korean rival on just about every level. It doesn't help that Samsung's budget phones usually don't strike a good price/performance balance... heck, it actually released some budget phones this year that were slightly worse in a few respects than their predecessors.

At the other end is, well, Apple. As much as some Android fans might hate to admit it, a lot of people got Galaxy S and Note phones simply because they couldn't get large iPhones. Well, now they can. We'll have to see how that pans out in the long run, but I'm sure there are a few Samsung executives who stay awake at night realizing that they now have to do more than just compete on specs and copy their rivals.

Their ONLY saving grace is AMOLED and removable batteries for high-end which isn't a big deal for most people.

Yeah, it's their midrange and below which are getting slaughtered by the competition. If you think the Moto G is a steal for $180, guess what, Xiaomi had already took the same specs to $100 (both of which with FAR better Android than Lagwiz to boot). Samsung can fool consumers to buy their awfully specced, bloatware infested, and terribly supported phones with big marketing, but only once.

And I still haven't saw Samsung actually acknowledge and address their fundamental issues except for vague "we will cut down lineup by 30%" or "now focusing on midrange low-end"

 

[lxskllr]

True, it does. But the waterproofing isn't a top feature for most people. Water proofing wasn't on my list really when I bought my Z3.

That was the deciding feature on me getting a S5; that and the dust proofing. I'm pretty happy with it all things considered.

My biggest complaint is Sprint's fault. I can't turn call waiting off without deactivating it from the account. Can that be done on an individual phone from an account, or do all phones have to have that deactivated? If it can be done on one phone, my biggest annoyance will be solved.