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Samsung will boost production to ease Note 7 supply shortage

Samsung has already adjusted its Note 7 launch plans and now the company revealed that it can’t manufacture new units as fast as existing ones fly off the shelves.
By
August 24, 2016
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Samsung’s having a great year and with phones like the Galaxy S7 Edge and the new Note 7 it’s easy to see why – despite their high price tags, customers love Samsung’s Galaxies.

High demand can create problems however. Samsung has already adjusted its Note 7 launch plans and now the company revealed that it can’t manufacture new units as fast as existing ones fly off the shelves.

In a statement today, Samsung said it’s facing “supply constraints globally” due to pre-orders volumes that “far exceeded” estimates.

Samsung used a similar language last year when the curved Galaxy S6 Edge sold much better than the Korean giant had anticipated.

The problem this year is not related to the double-curved display of the Note 7, according to an anonymous source cited by Reuters. While the root cause of the supply issues remains unclear, the company said it’s trying to boost production. Analysts consulted by Reuters think the supply snag is only temporary and predict sales of up to 15 million Galaxy Note 7 units this year. That’s compared to just 9 million for the Note 5, which was released in a limited number of markets.

Cynics could see this talk about “unprecedented demand” as a corporate hype-building exercise. And that might be the case to some extent. But nobody can deny the warm welcome the Note 7 received, especially when you compare it to the muted response to the Note 5.

Have you run into any issues trying to order a Note 7?