Samsung may have lost sales of 2 million units as a result of Galaxy S3 shortage

June 26, 2012
14
62
30 29 3

Looking at the recent headlines related to the Samsung Galaxy S3, you’ll probably see the word “delay” or “pushed back” thrown about here and there. This is especially the case for countries like the US and Canada, where the major carriers have been overwhelmed by the demand for the Galaxy S3, and even had to delay some shipments of the super phone.

Did Samsung underestimate the selling power of the Galaxy S3?

According to research firm Gartner analyst Carolina Milanesi, the shortage problem that Samsung is facing right now can be boiled down to the company’s overestimation of  the competition, and not because they didn’t believe in the Samsung Galaxy S3. With only the HTC One X as an able competitor and with no sight of the iPhone 5, customers flock to the Galaxy S3 at an unprecedented level, one that took even Samsung by surprise.

Milanesi said that the potential loss of sales from the shortage problem that’s been marring the launch of the phone in several countries may amount to 2 million units since the phone was launched at the end of May.

In a written statement, Samsung admitted that they have problems meeting the demand for the phone, but said that the issues have now been resolved. “It is simply that demand far exceeded our expectation. But that doesn’t mean we had set a very conservative demand forecast.”

It’s worth mentioning that the phone received some last minute design tweaks two weeks prior to its launch, after then CEO of the company, Choi Gee-sung, decided that hundreds of thousands of Pebble Blue back cases should be thrown away, because he didn’t find them satisfactory. The final design was only approved 10 days before the phone’s launch.

The Samsung Galaxy S3 is set to become the company’s fastest selling phone, with sales expected to reach 10 million units in July, or merely two months after it was first launched. Another research firm, Barclays, has estimated that the shipments of the Galaxy S3 in the third quarter will top 15 million units.

While we don’t doubt that the component shortage problem is genuine, we think Samsung is rather enjoying the endless media reports, as the company moves ever closer to Apple’s level of magnitude. What do you think?

Comments

  • Marc

    I think Samsung has allready prooved what they are worth. Building near perfect products in realibiliter and simnplicity and bueaty. The delay in delivering the product was not intentional. Personaly I think Samsung was miss-informed of they’re popularity in Noth America and cought by surprise. The company builds chip processors for some of Apple`s Iphone and are so dominent in the GSM world that they shouldnt hesistate for the CDMA part of the world. The only end problem would probably be the crash of any small competition and being the only big competitor they would loose money and all the creticts would turn towards them. What do you think?

    • Thomas

      Please go back to school and learn how to spell.

      • Hord!

        Thomas, You’re here to read this article right? to tell a person that he needs to go to school because of his spelling is an utter insult rather than putting your attention to somebody Else’s spelling! why stay here? i suggest you go to an English class where you can denounce your selfish, egoistic-rude attitude as an ever perfect speller crap scholar!

    • prince

      Anywayss??? Samsung makes both the screen and processor for apple’s mobile products. And well, who knows what else. They are a company on the up and up of innovation. They are already receiving much hate and criticism from all directions and all i can say is its well deserved. Haters will always target the best and Samsung is the best. Katt WIlliams says it perfectly IMO.. Anyways Im happy to wait for my S3.. Samsung has come far.. My only regret in getting a S3 in knowing a S4 is around the corner.

  • DLEE

    BEWARE- SAMSUNG is shipping pebble blue SGS3’s with NO BACKCOVERS!!! I recieved my phone from T-Mobile (USA) yesterday with no backcover. Apparently this is not a rare occurance. Research the manufacturing issue with the blue covers and it will start to make sense. T-Mobile customer service-EPIC FAIL! I paid next day air shipping and they want me to ship it back-AT MY COST! They should send the back cover and or get Samsung to send back covers! JEEZ!

    • Jasmine Royal

      I just received my Samsung S3 pre-ordered from Verizon in white, and when I unboxed I flipped the phone over to discover that there was no back cover. I heard about this issue with the pebble but I really didn’t expect this. It has been such a hassle thus far. Verizon blames Sammy, Sammy blames Verizon. I plan to call Samsung’s accessories division when they open today. This is unreal.

  • jaysann22

    All i can say is GOOD! They should take a hit for their arrogance. They should have anticipated such demand due to the global hype this phone dished out and received. Especially in American markets; considering the cell phone culture has become apart of American culture similar to the Automobile culture in the US.

    • Alex

      Arrogance?? This does not seem like arrogance to me, If they were arrogant they wouldn’t have had these shortages, they would have had excess phones.

      • jaysann22

        Arrogance as they thought they had made enough and were prepared. And apparently, they were not…

        • Melad360

          how does that make it arrogance?? its called a miscalculation if they thought they made enough but didnt

    • prince

      Wait Wait… Whattt?? cell phone culture and automobile culture??? Huhh??? Since when did we start making phones?? Even apple outsources that stuff to other countries…

      • jaysann22

        Americans put a lot of emphasis on their automobiles. Automobiles have become a reflection of societal status. And its obvious in the American automobile market. Why would one auto manufacturer need 4-5 different brands of vehicles, makes, and models? To meet the demand of the American people’s enthusiasm. i.e. GM has Chevrolet, GMC, Pontiac, Buick, Saturn etc….. So, yes, its apart of American culture, if not becoming apart of Global culture to where a great amount of emphasis and enthusiasm people put on their cell phones. Its also becoming a symbol of status. And the Iphone is a prime example. Fortunately, the culture is changing. And its changing to a more Android dominated culture.

      • jaysann22

        American automobiles are also outsourced. The manufacturing origin of a product has nothing to do with this case. For example, Pop culture is becoming quite popular in the US. Just because a Pop artist may be from another country, doesn’t mean they cannot be a part of American pop culture.

  • Pete B

    I don’t really mind, Samsung sells many different products & I anticipated this delay… only thing I don’t like is that Samsung hasn’t confirmed an official re-release date..