Samsung has reportedly reduced its components inventory for the Galaxy S4, adding weight to reports that sales of the latest flagship have slowed since it landed in late April.
According to Korea’s ETNews, the S-maker has slashed its parts order for the S4 to 6.5 million, which is less than half of what it purchased in May and will bring production down by 10 to 15 per cent.
News of the inventory adjustment follows reports that the Galaxy S4 has not been selling as well it had in the first few weeks of launch, JPMorgan stating that the numbers are “way below” its earliest estimates.
This prompted Samsung CEO JK Shin to personally reveal that sales of the handset “are fine” and that it's been “selling well”.
Samsung had previously said that it shifted an impressive four million Galaxy S4 units in just four days of availability, going on to sell (to retailers) a very respectable 10 million in four weeks.
However, the handset has struggled to maintain its momentum since then, resulting in a price cut from Vodafone in late May, barely two months after it hit shop shelves.
To add insult to injury, despite a massive marketing push, the Galaxy S4 was beaten to second place by Apple’s iPhone 5, which claimed pole position as the UK’s most popular smartphone in May on the uSwitch Mobile Tracker.
Ernest Doku, telecoms expert at uSwitch.com, said: “While the Galaxy S4 has been an unmitigated success on a global scale, price drops and special offers barely a month after launch shows that the heavily-hyped device has needed a bit more oomph to make waves in the UK market.”
Industry analysts cited by Reuters claimed that the handset’s less-than-stellar performance was because it “lacks any real wow factor” to differentiate itself from the competition.
Although Samsung added a plethora of software features to the S4 as part of its latest Nature UX 2.0 custom Android user interface, they have failed to gain the kind of mass-market traction that it had hoped for.
The Galaxy S4’s poor sales could have long-tem impact on the electronics maker’s profit sheets, with 43 analysts surveyed by Reuters lowering their estimates by up to a quarter in the last month alone.
Samsung has yet to comment on its reason for the reduced parts order, but the smart money is on its announcements of three new variants of the Galaxy S4: the Galaxy S4 Active, the S4 Zoom and the S4 Mini, which were officially debuted yesterday at a media event in London.
Source: [ETNews] via SamMobile