Posted by Abhijeet M. 5 months ago

Report: Samsung cutting down on Galaxy S5 orders in response to iPhone 6


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As tradition dictates, Apple will take the stage later this year to unveil its newest iPhone (or two, if the Cupertino giant is continuing its plans to offer a cheaper iPhone like the iPhone 5c). Rumors have pretty much confirmed that the next iPhone will finally get a larger display, which if accurate will likely drive a few millions towards the iPhone, mainly those who have adopted Android due to the larger screen sizes available on Android devices. According to a report, Samsung is worried that a lot of its potential customers are currently holding out for the iPhone 6, and has apparently cut down on Galaxy S5 supply chain orders for the third quarter of 2014 by a whopping 25 percent.

Samsung reportedly ordered 21 million units of the Galaxy S5 in the second quarter, but is expected to reduce that figure to 15 million in the coming three months. The Korean giant has also cut down on Galaxy S4 orders from 6 million to 5 million, which is an almost similar reduction to the Galaxy S5. There’s no telling if this report is accurate or not, but given the fact that a larger iPhone (likely a 4.7-inch one) will surely be tempting a lot of consumers into buying into Apple’s ecosystem, it might not be too far-fetched to think that Samsung is taking some steps to ensure it doesn’t have to sit on unsold inventory.

Guess the Galaxy Note 4 will have to be something really special if Samsung intends to keep consumers in its grasp, though with the Galaxy Note series not exactly a standard phone and offering features like a stylus, its sales will likely be less affected by a large-screen iPhone. Well, unless rumors of a 5.5-inch iPhone 6 making its debut alongside the 4.7-inch iPhone 6 turn out to be true.

ViaSource

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29 comments on “Report: Samsung cutting down on Galaxy S5 orders in response to iPhone 6

  1. ryarrell 5 months ago said:

    Samsung isn’t worried about any silly iphone that’s for sure.

    Report this comment

    • Abhijeet M. 5 months ago said:

      Your fanboyism is commendable, but they actually are. Larger iPhones are something many have been waiting for, using Android in the meantime. People WILL flock to a larger iPhone, and Samsung will have to take steps to counter it. Heck, two of my friends bought an S5 and an M8 because neither were okay with the small 4-inch screen, and you can find many folks on the web using an Android device for the same reason. :)

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      • tempott 5 months ago said:

        People always seem to forget that most users don’t care what OS they are using. To them it’s just a phone. So for the iPhone to bring a bigger display is no different to any other bigger display already on the market. LG, Sony, HTC, etc… all already have bigger screens, but the consumer still overwhelmingly chose the Samsung. So it’s not only the bigger screen that attracted the consumers to Samsung, otherwise you would see a much more evenly spread user base among the Android OEMs. But it’s far from even. Samsung has almost 70% over the Android market.

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        • Abhijeet M. 5 months ago said:

          Not really, the iPhone brand has a strong pull. You’d be surprised at just how many people are holding out for a larger iPhone. Basically, when you go to the store and see an iPhone similar in size to the Galaxy S and the HTCs and the Sonys, for many people the iPhone will be the choice, especially if they are all priced around the same. I don’t say a huge amount of people will suddenly switch, but a bigger iPhone WILL cause troubles for Samsung and basically every manufacturer. Believing otherwise is just blind fanboyism, and it’s something we all agree with in the SamMobile team (and we’re hoping Samsung does something awesome to show it is the boss.)

          As for your point that we would have seen a more evenly spread user base among Android OEMs, not really. The general consumer knows two things: iPhone, and Galaxy. Many chose Galaxy because of the bigger screen, but Samsung won’t have that distinction anymore. Samsung’s marketing is so great (along with their devices), that other Android OEMs don’t really stand a chance no matter what, so it’s always been about Apple and Samsung. It’s not the OS that has a pull, it’s the brand name = iPhone and Galaxy.

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          • iKroneaous 5 months ago said:

            It’s obvious that if there is any cutback for any reason, it’s because they are getting ready to release S 5 Prime, S5 Active, S 5 Mini and Galaxy K Zoom w/ 10x zoom! ….they did the same thing last year. Reduced inventories of S4 prior to intro of new sub category models! ….to Samsung it’s apple who??? lol….

            Over this next 4.5 months, they’ll complete 2 Quarters of Samsung Totally Dominating Apple and every other company combined, selling over 100 Million Smartphones in June and September Quarters. On their way to 400 Million Smartphone Sales by Year’s end! Apple? ….hahaha…. is in trouble in China and the State has declared War on American Tech Firms for spying for NSA!!!

            I wouldn’t want to be Apple, Google (although they don’t sell anything in China anyway), Cisco, etc….. because the Chinese are bringing Real Thermonuclear Fire Power to the fight banning Apple iPhone to push Huawei, ZTE, Xiaomi, etc instead!!! ;-P

            Bigger Screens? Mwahaha…. if you think that’s the only reason, you are sadly mistaken. They buy Samsung because they are always Bringing the NeXT BIG THING instead of Apple! lol….

            Next Big Thing? Is Flexible Screens as of last November, when they successfully demonstrated mass production technique for Graphene coated screens using gold as the medium! YOU think sapphire is hard? Graphene is even Harder than Diamonds! :D mwahahaha….

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          • sguyx 5 months ago said:

            “Not really, the iPhone brand has a strong pull.”

            Mabe true in US, but not here Europe. iOS has only 19% market share in Europe (and it goes down all the time), even Windows (phone) has 10% market share already. While iOS sinks, Android has gone up and same does Windows.

            Apple is not a real big issue for Samsung or any other larger companies. Nowadays it will be Windows phone operating system – if they do that well, it will be the real competitor for Android. Apples days are over…

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        • prasuranga 5 months ago said:

          If Samsung is got 70% over the android market, you mean to say Samsung is the best…..Check out the Indian market you would see how many samsung phones get to the service centers each and every day….Samsung does not care for the customers, they are doing business only for money and do not care of what they manufacture..so please do not compare a samsung phone to an IPHONE.

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      • vbx 5 months ago said:

        LOL, your fanboyism towards Apple is even worst. hahaha No one who doesn’t already have an iPhone it willing to buy an iPhone.

        I don’t give a fk about larger screen. Which is why I’m holding out for the S5 Mini.

        Larger screens are overrated. If I wanted a larger screen, I would use my Galaxy Tab 7.7. Which has phone and text options.

        Apple is just LATE in the game. What next? Come up with a smart watch? Add a “fitness option” to their next lineup? Add widgets to their iOS? Oh wait, that’s right. Apple is doing exactly that. Copying Android. lol

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    • iKroneaous 5 months ago said:

      That’s for sure…. obviously a Wall Street ploy at misinforming people in hopes they can slow down Samsung’s growth in sales. Nobody talked about the numbers the last two quarters because they are so embarrassing to Apple!

      In the last 3 quarters, Samsung has topped over 90 Million in Smartphone Sales. They are spreading out into other products too. Over the last few years they’ve broken into Pharmaceuticals and been preparing for Health and Fitness market. Not just designing, but making products within new Samsung Health & Electronics. They already launched S Health Hub App last year, brought Samsung Medison into Samsung Health and other huge moves on top of GEAR and FIT! ….and apparently they are getting ready to launch a totally new Galaxy Note and two new models by year’s end. Apple will feel like they’ve been buried in under an Avalanche of SAMSUNG’s!!! :D

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    • GinoTentori 5 months ago said:

      It is clear why Samsung is losing market share. Samsung does not care about its costumers. Apple keeps updating its phones, no matter how old they are. Samsung stops after only more than a year. The S4 will not get upadtes past 4.5. The S5 will get updates till June 2015. How do I know this? Look ate the S3. It got updates for less tah 18 months. 4.4 was announced by Google Sept/13. Do the math.

      Apple keeps updating without lame excuses like Samsung with the S3. Samsung its releasing several phones with lower specs than the S3 and all of them run 4.4.

      I do like Android, but for my next phone, I will look for ANYTHING that does not have a Samsung logo on it!!!!

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      • iKroneaous 5 months ago said:

        Samsung losing market share? lol…. that’s a laugh! :DDD Over the last 3 years, Samsung has gained market share from less than 10% to around 40% market share vs Apple falling from around 20% to around 12% now. In fact though they lost a minute 1.3% in Q1 2014, they still sold over 92 Million in the last quarter for a total that still blew all their top competitors put together sold.

        That’s been the case the last 11 quarters and now this quarter, since that tiny drop was the Quarter prior to Galaxy S 5 launch, we’ve seen Galaxy S 5′s 1st model selling out now before Active, Zoom, Mega, etc have launched. They projected over 30 Million Galaxy S 5′s sold in Q2 alone and are on target to reach that even with new models counted separately come out for sale. With at least another 3 high end models to come out this year built by Samsung not including Zoom, Active, Mega,etc. Galaxy S series alone will sell over a 125 Million including S3, S4 and S5 in 2014 of the over 400 Million smartphones they’re projected to sell!

        btw…. WRONG!!! ….Apple dropped iPhone 4 from receiving iOS 7 and they will drop 4s when then launch iPhone 6. They’re tricky dicks as far as the numbers go. They are hoping nobody realizes that original iPhone, iPhone 3g, iPhone 3gs have not been supported the last 2yrs with new features. Only security updates and that’s not the same as receiving a full update to a new version. In fact only iPhone 5s gets the full iOS7 update and even it won’t get full feature updates in iOS 8! hahaha….. If you aren’t getting feature updates…. what’s the point? Lame….. ignorant iFanatical iPhone fanboys don’t want to talk about that! ;-P ….or the fact that iTV and iWatch have been lost in deep space of iVaporware for the last 3yrs.

        While Samsung now PWNS…. Health and fitness by releasing S Health last year, absorbing Samsung Medison (design & make high end 3D/4D Ultrasound equipment) into Samsung Health and Electronics in 2011. They are one of the premier health industry equipment providers now designing Fitness gear too. Be it for the Health Industry or consumers, they are the only one who can simultaneously launch so many models in one year that they represent over 40% market share despite so many new contenders launching devices. Except Apple….. will most likely lose market share even if the sell more iPhones. By year’s end Apple will have sold less than 11% market share if they’re lucky! :DDD

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      • maciator777 5 months ago said:

        What does apple? I was a long iPhone user till i switched to samsung. And there is two things wont bring me back, nope not the screen, since there are better screens arround than retina now. But bluetooth file shareing among all devices and adobe flash player to be able to play online games, thats all i wanted from apple, but no, apple remained silent, so never go back, also want be able to install apps online without any market, bye bye apple

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  2. miguelinho 5 months ago said:

    That’s why the note 4 comes out round about the same time, so what is there even to be worried about?

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    • Abhijeet M. 5 months ago said:

      Because the Note is a large device, it’s not as comfortable in size as the Galaxy S etc, so it’s not in direct competition with other flagships.

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      • iKroneaous 5 months ago said:

        It will be this year! …..and are you sure you should be writing on a site that is supposedly for Samsung? You seen to be Doublethinking everything in a sort of Applewellian Proletariat way. Silent Cell Apple Agent maybe…. ‘eh? Let’s hear what you have to say about Samsung selling more than their projected 400 Million Smartphones this year? ;-P …..and just in case you’re going to try to refute that, each phone sold is used by a consumer in this World. Some of even the cheaper models get sold to RICH People who could afford to buy any smartphone they want. But they are usually smart enough to buy only what they need.

        I’ve known Billionaires, who drive old cars till they drop…. it’s how people get rich in the first place. The fools buying iPhones are only pretend to be rich fools, Jonesing on showing off their little Apple icons as if that makes them better alone! mwahahaha…. doesn’t help one bit! :D

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  3. eidbest 5 months ago said:

    Personally I doubt that the larger screen on the upcoming Iphone will be the major deciding factor, yes, it could have an impact, but will not be the tilting deciding factor. The Iphone has its traditional clientèle as does Android. There are many people who can afford an Iphone, yet will go for an Android based phone and the same can be said vice-versa. I stand corrected if I am wrong but the OS is a major deciding factor plus the apps world that come with it. Some live a better life with IOS and others live a better life with Android, lest here we forget the growing W8P. Ultimately RD, practicality and ease of use may win the day.

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  4. acolosha 5 months ago said:

    Samsung should be worried, especially because of its very very poor software update policy. I’m one of the guys who will think twice at the next phone/tablet change, though I’m a Samsung fan and I had Samsung phones starting with S2 till the actual Note 3. But the disappointment of a very very poor customer care from Samsung and a lack of any software update on my tablet Note 10.1 GT-N8020 (still same sofware since I’ve bought it – Android 4.1.2) will make me change Samsung for another one, and the only choice in quality is Apple. It’s a shame that for Samsung we are not customers, we are just buyers…

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  5. gtone339 5 months ago said:

    Blame the media for hyping up the next iphone lol.

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  6. ZanyMan 5 months ago said:

    As if…

    I wonder how long at will take before foaming-at-the-mouth Apple fanatic and hater-of-everything-non-Apple Daniel Eran Dilger (of AppleInsider) will “report” this drivel… LOL

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  7. Chairman2018 5 months ago said:

    I doubt that Samsung is sweating any iPhone period. But nothing wrong in taking precoutionary measures when the Note 4 arrives,the iPhone 6 will be an afterthought

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  8. chris cee 5 months ago said:

    So, this “report” is from Taiwan…

    I am sure Foxconn or HTC is somehow behind this.

    In fact, it reminds me of this story “Hon Hai Chairman urges consumers to wait for Apple’s iPhone 5; ‘will put Samsung’s Galaxy III to shame’”.

    (Hon Hai is Foxconn)

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  9. vslsnks 5 months ago said:

    I use both an iPhone from my company and my personal Note 3. I can say that Apple sucks big time. They emphasize on how seamlessly it works without lagging etc, but its plain bullshit. They emphasize on its built quality and that it is not a plastic phone and they end up using plastic covers to shield their crappy phone!!
    Samsung is always winning the battle not only by using bigger screens, but by using amazing technologies and hardware.
    With Tizen on its way Samsung will not only kick Apples ass but Androids as well !!!

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  10. oversight 5 months ago said:

    Actually, it kind of makes sense to start cutting back GS5 orders. Between the arrival of the latest Jesus Phone, the Note 4, and a potential new premium brand (Galaxy F or whatever it’s called), demand for the S5 is going to take a hit. Better to start scaling production back a bit early than end up with a glut of unsold handsets.

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  11. Nahaz 5 months ago said:

    I’m just one of those people waiting to see if Apple release a 4.7 inch iPhone. I have all 3 of the major players (iPhone, Galaxy S4 and Lumia 920)

    The Samsung Galaxy S4 is a nice phone but firmware updates are the worst out of all the 3 companies I listed. Your phone carrier can only be blamed so much, but with Apple you don’t have to worry about phone carriers holding up firmwares.

    Android has got better over the years but the ads and the intrusions are getting worse every day. This leaves me with a choice of either Apple or Windows Phone. Waiting to hold both the Lumia 930 and iPhone 6 in my hand. I won’t go back to Samsung. If I wanted another Android phone I would probably go the Nexus series.

    It’s all about the sales at Samsung, and not the support.

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    • iKroneaous 5 months ago said:

      Say what? Galaxy S4 has been upgraded to Kit Kat. So what are you talking about? Apple’s iOS 7 is the most insecure mess ever. Having received 12 updates in around 6 to 7 months. That’s around 1 every two weeks average. They’ve been hit by kernel bugs, viruses and spoofing so bad, that iOS 7 is destined to become the most exploited mobile OS on the planet!

      Think about it….. being forced to update a major release 12 times also makes it the most fragmented single release ever. Because iPhone users have been unable to or haven’t wanted to update their phones every two weeks! lol….. Nokia is still lost in the dark running windows and their release of an Android device proves they’re having second thoughts. They were expected to take 20% market share and have failed to take even 10% so far. So just getting updates certainly can’t be all that special? lol…. and you’re wrong, if Samsung had such rotten support, why do people like me keep buying them? Why do they continually out sell all their greatest competition combined? Why are they still projected to sell 100 Million more smartphones this year than they did last year? Because they are the only ones truly bringing anything NEW out. The rest are still trying to compete with Apple for 2nd place! hahaha…

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  12. jrvstepien 5 months ago said:

    What most disappoints regarding Samsung is the lack of updates. Really, if it were not for the updates provided here on SamMobile, I would have given up the Samsung.

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  13. edwardmowah 5 months ago said:

    No one has mentioned anything about battery improvements for the new Iphone, a bigger screen is simply not enough to lure me / someone like me into buying it. Phones these days can last a whole day & even more with heavy use, i literarily had to charge my iphone by the hour, i just had to switch to samsung regardless of the poor OS updates.
    I would buy an iphone with good battery if they ever decide to make one. Screen size isn’t such a big deal, its something that they should have done long ago & focus on more important stuff like battery life.

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  14. versze 5 months ago said:

    Actually, apart from big screen, there is another advantage most Android phones have over iPhones: microSD card slot!
    So iPhone could increase the screen size but the limitation of storage space is annoying – unless you pay more for it!

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  15. caesantos 5 months ago said:

    People care about microSD card slot. People care about removable batteries. People care about cameras with LOTS of megapixels. People care about larger screens, but now they want the screens to be 4K.
    I think people who left the iPhone can “go back” to iPhone, but a lot of them will realize that it’s still the same iPhone with almost the same limitations.

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