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AP Photo/Ahn Young-joon

So Samsung's flagship phone didn't do as well as expected

The company sold 12 million Galaxy S5 units in 90 days, a 40% drop compared to its predecessor, with overstocking a major issue.

IT’S BEEN NO secret that Samsung’s year isn’t going as well as expected but it turns out sales of its flagship device didn’t go exactly to plan either.

According to the Wall Street Journal, Samsung sold 12 million Galaxy S5 units in the first three months, compared to the 16 million units its predecessor, the Galaxy S4, sold in the same time frame.

That was a 40% drop with the US being the only major market where sales actually increased. Sales in China, which has quickly become an important and highly competitive market, fell by 50%.

Part of the problem came after Samsung overestimated how many devices it would need to produce. It produced about 20% more devices than it did of the Galaxy S5′s predecessor, basing it on a survey of carrier partners around the world who were asked to predict demand.

This led to merchandise piling up in warehouses, forcing Samsung to spend more on marketing to unload the devices. It was also the reason why Samsung said it would cut the number of smartphone models it issues by up to one-third as it copes with increased pressure from rivals.

The report also mentioned that Samsung is considering making some changes in management to help revive its fortunes. One of the scenarios discussed was the co-chief executive and mobile head J.K. Shin – who presided over the company’s rapid rise and recent stumble in the smartphone industry – could be moved out of his role overseeing the mobile division.

It would mean that another co-CEO B.K. Yoon, who oversees Samsung’s home appliance and TV business, could take control of the mobile division alongside his current duties.

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36 Comments
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    Mute Get Lost Eircodes
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    Nov 24th 2014, 4:46 PM

    Because everyone who bought the S4 is still on contract !!!

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    Mute Richard Cynical
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    Nov 24th 2014, 7:45 PM

    And waiting for the s6

    70
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    Mute David Thomas
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    Nov 24th 2014, 8:55 PM

    True. Probably easier to shift if people weren’t stuck to two years contracts. Also if there was any real discerning differences between models

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    Mute Damian O'Brien
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    Nov 24th 2014, 4:16 PM

    I have the S5. Lovely phone. Great screen. If anyone gets the chance to get a deal on one, grab it.

    157
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    Mute James O Donoghue
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    Nov 24th 2014, 4:32 PM

    Nope I disagree I went from s3 to note 4 and of anyone was upgrading I’d highly recommend note I could have went s5 over last few months but I think alot like me were holding out for the note. Glad I did

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    Mute Allan Brown
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    Nov 24th 2014, 4:29 PM

    if they stopped releasing the phones yearly then they’d see an increase. no one is going to buy the s4 if they know a newer model is coming out in 6 months same with the s5 the 4 had only launched when rumors of a newer better model was coming out, saturating the market

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    Mute James
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    Nov 24th 2014, 4:18 PM

    12 million units in 3 months? Apple sold 10 million units in their first 3 days.

    63
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    Mute Rúairí O’ Sullivan
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    Nov 24th 2014, 4:22 PM

    and?

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    Mute Matthew Donoghue
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    Nov 24th 2014, 4:30 PM

    Why would anyone buy an iphone over an s4 or s5?

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    Mute James
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    Nov 24th 2014, 4:34 PM

    Excellent build quality (not plastic). Gorgeous design. Easy to use. Work’s/syncs with Macbook perfectly. Fingerprint unlock…

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    Mute J
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    Nov 24th 2014, 4:46 PM

    Matthew they already have judging by the stats

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    Mute Jason Culligan
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    Nov 24th 2014, 9:18 PM

    Why would anyone buy a Macbook? Android phones and PC computers come with the same specs for much lower prices.

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    Mute James
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    Nov 24th 2014, 9:57 PM

    Nearly every designer in the world uses Macs. They are the industry standard, no questions. Again their ‘carved out of a single block of aluminium’ solid build quality is above any of the other plastic laptops. They also sync beautifully with an iPhone. A Samsung netbook has zero built in comparability with a windows laptop.

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    Mute Anthony Carroll
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    Nov 24th 2014, 10:23 PM

    iDrones

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    Mute Rónán O'Suilleabháin
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    Nov 24th 2014, 4:46 PM

    I’m using an S4. It’s a great phone in terms of size, camera, interface etc.

    But:
    1) Lots of apps are built to a lower standard than they were on my iphone4, I’m choosing to blame the android API and phone for this.
    e.g. My Phone was recently draining over a 30 hour period or less. I did some investigation and discovered that TheJournal.ie app was claiming 25% of my power since last charge. I wasn’t even using the app in that time. I delete the app and I’m now getting closer to 2 days per charge. No such problem with iphone apps
    e.g. 2 The skype app’s integration is just terrible. The volume on the phone dictates what the volume on the call can be. So if you have phone volume high going into the call, you can never get the call volume down low. Bananas

    2) This phone literally resets itself on average every 2 days. I cannot begin to describe how annoying this is. You’re waiting on a call, you pull your phone out of your pocket and its asking for a SIM. I barely use any apps on the phone and I have to deal with this pants. All attempts to solve it are unhelpful “Switch off the phone and reboot” “Disable apps one by one until you discover the problem”. Shouldn’t be a problem, shouldn’t reset.

    3) Even mild internet use makes the back burning to the touch. It’ll melt one of these days.

    I wouldn’t buy another samsung phone. Pity. I have top-quality samsung tv, samsung sound system, samsung blu-ray player. I even have a samsung fridge freezer and they’re all top notch.

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    Mute Brian Nolan
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    Nov 24th 2014, 6:30 PM

    By any chance is your battery bloated?

    The issue seems to be limited to batteries with serial numbers beginning with “BD”.

    18
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    Mute Corcaigh Abú
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    Nov 24th 2014, 7:14 PM

    I’ve got that battery sucking journal app problem too on my s4 mini. Now I wait till I get home and read it on my nexus 7. Work has become terribly productive as a result :(

    18
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    Mute winding_down
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    Nov 24th 2014, 4:27 PM

    My SGS2 got rolled out by the wheels of a double decker Dublin Bus. Screen smashed, but the phone was otherwise grand. Kinda disappointed at the time – I hated that phone!

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    Mute Joey Dempsey
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    Nov 24th 2014, 4:27 PM

    Probably not helped by the shocking battery & software issues of the S4, nor did the absurd pricing on contract. It is a super phone albeit the alpha is better will less of the silly health monitoring nonsense of the S5 and it has an impressive 32gb internal memory.

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    Mute Del Haven
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    Nov 24th 2014, 4:46 PM

    I still love my s4 as much as the day I got it almost two years ago. Have not had one issue with it.

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    Mute Darren Doheny
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    Nov 24th 2014, 4:29 PM

    Build quality is shocking! I’d take a HTC or a Sony over a Samsung any day if you were set on android.

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    Mute James O Donoghue
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    Nov 24th 2014, 4:34 PM

    Nope. Holding note 4 in my hand right now. Great build

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    Mute That's a paddlin'
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    Nov 24th 2014, 4:38 PM

    @ Darren

    Watch this space for the S6. If the new metal Alpha/Note is anything to go by it will be an amazing phone.

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    Mute Darren Doheny
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    Nov 24th 2014, 4:42 PM

    Yeah totally impressed by the alpha. And just take the back cover off your note 4 and try hold a battery at the opposite end and watch that plastic bend.

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    Mute Mike
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    Nov 24th 2014, 4:16 PM

    I prefer the Samsung S3

    31
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    Mute Imogene O'Brien
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    Nov 24th 2014, 4:21 PM

    I still use my S3 as well. Old technology by now but a lovely phone all the same.

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    Mute David Grey
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    Nov 24th 2014, 4:36 PM

    I’m still using an S2!- great phone-much better camera than most Iphones!
    Why would anyone buy an Iphone??
    Might get this phone in the new year-they might go down in price? ?

    27
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    Mute Darren Doheny
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    Nov 24th 2014, 4:43 PM

    Didn’t think the article was about iPhones?

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    Mute Joshua Walsh
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    Nov 24th 2014, 5:52 PM

    There isn’t a big enough leap between phone generation’s anymore. Sure the camera is a bit better but 500 euro better. All phone manufacturers will see this happen in the coming years. It will happen apple next year as the one thing people wanted they gave them this year in a bigger screen. I think a full metal phone from Samsung will get numbers rising again

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    Mute Tony Hartigan
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    Nov 24th 2014, 4:43 PM

    My Samsung S4 been back for repairs since Aug last 3 times.

    22
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    Mute Sharon Reid
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    Nov 24th 2014, 5:36 PM

    Personally I love Samsung their durability is why I love them, I sat on my S4 dropped it near 100 times hubby really smashed it other day dropped it while out running and it still works! He dropped his iPhone once and it stopped working,along with cables going on fire every couple of weeks he is leaning towards getting a Samsung as his next phone I already have the S5 and it’s pretty smooth already dropped it 3 or 4 times bar a nick on the steal cover not a scratch on screen I watch Netflix all day and I’ve enough battery to get me home on the bus!

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    Mute Richard Cynical
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    Nov 24th 2014, 7:50 PM

    Sharon by any chance your hands are made of butter

    26
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    Mute Randle P McMurphy
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    Nov 24th 2014, 8:04 PM

    @Sharon. Two things worry me re your post..the cables going on fire every couple of weeks part, and the watching Netflicks all day(at work?) before getting home on the bus part:-).

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    Mute Jonny Lennon
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    Nov 24th 2014, 6:58 PM

    If your purchasing a phone outright for those of us who don’t like being tied into long contracts you cannot go wrong than the One plus One, half the price of Samsung no ugly touchwiz and as good if not better

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    Mute Randle P McMurphy
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    Nov 24th 2014, 8:11 PM

    @jonny. They do appear to be next gen, and progressive to boot, but what’s with the ‘invite only to purchase’ rubbish!?

    6
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