Samsung, the Korean phone making giant, is reported to decrease the production of its flagship series Galaxy S4 by almost 10 to 15 percent reduction.
According to the country’s news website, ET News, July is going to see far less orders for the new Galaxy S4 model. According to the industry news sources, Samsung placed an order of around 6.5 million Galaxy S4 handsets that are merely a half of the orders they gave for May production.
The results translate into meaning Galaxy S4 hasn’t been much popular with the customers and the welcome received wasn’t as warm as expected. The renowned analyst JPMorgan commented regarding the sales being “20-30 percent lower…“ than the firm was prepared for. The comments alone resulted in a downward trend in the share price of the company by six percent overnight, taking £7.2bn away from the firm.
Even though the news of a slowed down S4 production, Samsung CEO JK Shin denied all these rumors saying,
”I can say sales of the Galaxy S4 Smartphone are fine. It’s been selling well.”
“The report (by JPMorgan) was based on its own analysis. Probably, the bank may have corrected its previous bullish estimate about the [Galaxy] S4 sales.”
The company didn’t budge from its assured stance at the Galaxy and Ativ Premier Event in London on Thursday as they announced to receive an outstanding response to Galaxy S4. In addition to slashing back the Galaxy S4 production, it is expected Samsung is going to discontinue S3 sooner than they intended to. That means Galaxy S3 is going to be one of the devices discontinued due to “poor sales performance“.