In an ironic twist, Samsung’s financials were reportedly harmed by one of their phones exceeding expectations instead of underperforming for a change.
How can a mobile device manufacturer lose money when its latest flagships are on track to breaking the sales records of their predecessors? Simple – by underestimating the stellar potential of the more “gimmicky”, unique-looking variant.
Apparently, the global industry champions anticipated they’d distribute around four standard Galaxy S6s for every Edge copy shipped to end consumers, which proved a scenario not at all in line with the market reality.
Why would that be such a big deal, especially given the “edgy” model is costlier? Well, Samsung set up production for the two high-end Androids according to their demand predictions, and now, they’re purportedly sitting on a boatload of non-curved GS6s while everybody wants the other handheld.
This was of course supposed to see its yield rates considerably increased recently, but still, supply is cited as “constrained”, The Wall Street Journal claims. A very legitimate fear thus becomes the Android king’s inability to tidy up the S6 Edge’s earnings before Apple takes the wraps off the iPhone 6s and 6s Plus.
We’ll obviously never know exactly how much Sammy has profited off the GS6 pair, but overall, the South Korean outfit expects to reap more than $6 billion in the fiscal quarter ending June 30. That’s the company’s operating profit, mind you, and while remarkable by all accounts, it will mark its seventh consecutive revenue dip and a 4 percent slide compared to the same period of last year.