When the SG6 was announced with it’s, erm, ‘interesting’, policy of removing the SD card slot, adding, well, not very much at all and attempting to follow the iPhone pricing structure of scamming customers as much as possible for more and more memory to hold that nice chunky OS plus all that lovely bloatware, we did say there was every chance it would go the same way as the SG5, which was a big enough disaster for the head of Samsung’s Mobile Division to get fired.
Today I woke up to the news the Samsungs profits had fallen 8%, in line with warnings earlier this month.
Why? Well, despite Androidian trumpeting (and it will all be forgotten now), the SG6 followed the same path as the SG5, HTC One M8 and HTC M9, a quick rash of initial orders and then a drop off a cliff. Indeed, as we reported in May, there were, apparently 20 million pre-orders but only 10 million units sold.
And a sales forecast of 70 million.
That’s rather a HUGE miss on budget. And, before any plank attempts to shout ‘ah yes, but how many did BLACKBERRY sell in that time, eh?’, it’s irrelevant. If BlackBerry sold 2 Passports but only budgetted for 1, that’s still 60,000,001 ahead of Samsung.
Indeed, this is, according to the BBC, the fifth straight quarter in a row where profits have fallen with the mobile division reporting a staggering drop:
Profit for the mobile division though fell to 2.76tn won from 4.42tn won a year earlier.
And remember, this is with Samsungs HUGE marketing spend, ridiculous carrier support (I personally had half a dozen emails demanding I ‘upgrade’ to one) and sales rep bonus schemes (which of course don’t exist (cough)).
So, what was the reason for this epic fail?
14 hours ago the BBC gave the reported reason from Samsung as:
Samsung said that sales of its Galaxy S6 smartphone fell short of expectations because the company could not meet the demand for its flagship model.
However, just a few hours later Samsung let the cat out of the bag and let it roam across the floor and up the curtains as Mobile World reported that Samsung now said that as they had so badly underestimated the demand for their products – remember, THEY forecast 70 million as a sales figure and sold 10 million – that they would be:
Seeking to recoup losses by cutting the price of the Samsung Galaxy S6 and the S6 Edge. “The sales momentum for high-end products will be maintained by adjusting the price of the Galaxy S6 and S6 Edge,” the company said.
So, to summarise, Samsung have a product that is in such HUGE DEMAND that they couldn’t keep up so are cutting the price of it to sell more.
What with HTC floundering, Samsung flopping, Sony also today reporting a large drop in their mobile division, the Stagefright bug, and an OS which is, frankly stuck, I’m really beginning to wonder…
Who needs who more, Android or BlackBerry?