Samsung’s mobile business has been having a rough year – it’s still one of the biggest and most profitable players in the Android ecosystem, but profits are down. That can be attributed at least in part to lower than expected sales of the company’s flagship Galaxy S5. The Wall Street Journal reports that Samsung increased production by 20 percent relative to last year’s Galaxy S4, but that it actually sold 40 percent less than it expected to. The S4 sold around 16 million phones in its first three months on the market, compared to just 12 million for the S5.
Samsung was becoming far too dominant, so I’m glad they’re being taken down a notch on both the high and the low end. Other Android manufacturers (and Apple, but that’s nothing new) are putting the squeeze on Samsung, and that leads to more choice for consumers, as well as lower prices, and in many cases, better quality for the same or less money.
We all benefit.
So that 40% figure is almost meaningless. Who cares about expectations?*
The 12 vs 16 million for S5 vs S4 is a somewhat better measure, but that’s just over the course of a quarter. Quarterly financial reporting rears its retarded head once again.
* And who are the stupid investors who believe what a company say they expect?