Samsung S5 Pre-Orders Not Great

matjamca · Apr 9, 2014

Hi,

I work in the contact centre of a well known phone company in the UK. Preparing for the Galaxy S5 launch, the company held a strategy meeting to discuss the risks of the launch on the contact centre.

Apparently, S5 pre-orders are not where the company anticipated. Whilst exact numbers weren't given, the company expects to have sufficient stock to meet all pre-orders and we should see little impact within the contact centre.

This of course only applies to the White and Black models as the Blue and Gold are delayed until late April (Blue) and May (Gold). However, it suggests the S5 may disappoint Samsung.

In addition to this, Samsung have apparently reduced the cost of the S5 in South Korea by 10%.

Are sales below expectations?

mclld · Apr 9, 2014

I could be the only one to buy one and wouldnt care. I like the phones they put out but couldnt care less about the sale numbers

jamezr · Apr 9, 2014

matjamca said:
Hi,

I work in the contact centre of a well known phone company in the UK. Preparing for the Galaxy S5 launch, the company held a strategy meeting to discuss the risks of the launch on the contact centre.

Apparently, S5 pre-orders are not where the company anticipated. Whilst exact numbers weren't given, the company expects to have sufficient stock to meet all pre-orders and we should see little impact within the contact centre.

This of course only applies to the White and Black models as the Blue and Gold are delayed until late April (Blue) and May (Gold). However, it suggests the S5 may disappoint Samsung.

In addition to this, Samsung have apparently reduced the cost of the S5 in South Korea by 10%.

Are sales below expectations?

I think they said the same thing about the S4 when it was released.....then it went on to sell about 50 million?

matjamca · Apr 9, 2014

jamezr said:
I think they said the same thing about the S4 when it was released.....then it went on to sell about 50 million?

In our place, the Galaxy S4 saw massive pre-order take up. Either Samsung have managed to ship enough handsets to meet the same level of S4 pre-orders (unlikely considering Global launch) or pre-orders are lower than expected.

Our top managers normally have plenty of overtime booked in for the launch weekend to answer calls, but they haven't done so this year for the S5.

MRU · Apr 9, 2014

jamezr said:
I think they said the same thing about the S4 when it was released.....then it went on to sell about 50 million?

True.. Though in fairness they announced that they expected to sell 100 million during its launch months.

50 million is great, but certainly not where they fully wanted or expected it to be.

TheBigKing · Apr 9, 2014

In my country claro network it's offering the s5 free with a plan on 89.99$

Tarzanman · Apr 10, 2014

The issue is that their old phones (S3 and S4) are still very good phones. Most people who have them aren't involved in the sorts of activities (big games, heavy media usage) that would help push them toward getting a new phone.

dumastudetto · Apr 10, 2014

I can't say I'm surprised. There is a lot of competition for Samsung in the Android market and both HTC and Sony are releasing sexier premium devices this year. Cheap fake plastic Samsung is going to take one hell of a beating imo.

The Game 161 · Apr 10, 2014

dumastudetto said:
I can't say I'm surprised. There is a lot of competition for Samsung in the Android market and both HTC and Sony are releasing sexier premium devices this year. Cheap fake plastic Samsung is going to take one hell of a beating imo.

The new Samsung phones look anything but cheap plastic. S3/s4? Sure but the note 3 and s5 have a much nicer look and feel to them.

Shanghaichica · Apr 10, 2014

Tarzanman said:
The issue is that their old phones (S3 and S4) are still very good phones. Most people who have them aren't involved in the sorts of activities (big games, heavy media usage) that would help push them toward getting a new phone.

I suppose they don't have the same gravitas that the iphone has. Do people queue up to get the latest galaxy phone. People have to have the latest iPhone even if the only difference between the one they already own is Siri or a fingerprint scanner.

I wouldn't upgrade from the S4 to the S5 but I may do from the note 3 to 4 depending on its features. However I was never one to have the latest iPhone when I used iPhones. I used to wait until my upgrade was due and then change my phone.

----------

dumastudetto said:
I can't say I'm surprised. There is a lot of competition for Samsung in the Android market and both HTC and Sony are releasing sexier premium devices this year. Cheap fake plastic Samsung is going to take one hell of a beating imo.

Samsung has their 'fake plastic' phone last year and HTC and Sony had their works of art. It didn't do them any good though. Samsung's niche product the note 3, sold more that the HTC one and the Z1 combined.

maflynn · Apr 10, 2014

dumastudetto said:
I can't say I'm surprised. There is a lot of competition for Samsung in the Android market and both HTC and Sony are releasing sexier premium devices this year. Cheap fake plastic Samsung is going to take one hell of a beating imo.

Except for the fact that no one is buying HTC, they're bleeding massive amounts of money as Apple and Samsung are selling the most phones, they're unable to compete on the same level. I'm ont sure about Sony so I cannot comment on its phones.

Shanghaichica · Apr 10, 2014

maflynn said:
Except for the fact that no one is buying HTC, they're bleeding massive amounts of money as Apple and Samsung are selling the most phones, they're unable to compete on the same level. I'm ont sure about Sony so I cannot comment on its phones.

Sony lost a lot of money last year and as a result they pulled out of the ebook and laptop market. Their smartphone sales are just so so. We are geeks, but the general public don't care about HTC phones or Sony phones. As you quite rightly said they care about iPhones and Samusng galaxy phones. I might argue that Samusng phones are some of the best on the market, but their tablets for he most part are not, yet they still outsold all the other android OEM's in the tablet market last year.

Samsung have built a brand name for themselves, they have the same and the buzz. HTC et al do not.

JaySoul · Apr 10, 2014

I plan on buying one SIM-free once the price has come down after a few months.

maflynn · Apr 10, 2014

Shanghaichica said:
Samsung have built a brand name for themselves, they have the same and the buzz. HTC et al do not.

I agree, that Samsung has, and they've been very successful in terms of design, model selection and marketing. What's strange is before Samsung entered into the android phone market, HTC was a major player. Its surprising they could not parley the early success or generate enough critical mass to keep it moving.

From what I've read, they made some rather poor strategic decisions in the past that blunted some of their early successes.

I like the HTC One, but I think Samsung is still make a better product.

jamezr · Apr 10, 2014

dumastudetto said:
I can't say I'm surprised. There is a lot of competition for Samsung in the Android market and both HTC and Sony are releasing sexier premium devices this year. Cheap fake plastic Samsung is going to take one hell of a beating imo.

The new Sony Z2 is plagued with quality issues. The Z2 has arguably the best camera around yet Sony cannot produce a quality product around the camera. It is plagued with fit and finish issues...gaps between the screen and frame and over heating. Samsung is the best selling Android phone maker. They make some very nice phones. They also support their phones with tons of advertising.

Shanghaichica · Apr 10, 2014

maflynn said:
I agree, that Samsung has, and they've been very successful in terms of design, model selection and marketing. What's strange is before Samsung entered into the android phone market, HTC was a major player. Its surprising they could not parley the early success or generate enough critical mass to keep it moving.

From what I've read, they made some rather poor strategic decisions in the past that blunted some of their early successes.

I like the HTC One, but I think Samsung is still make a better product.

Yea I remember HTC back in the day. My partner had the first android phone and my dad had phones like the desire and hero. It's strange that in the beginning they were the default android manufacturer yet now they can't catch a break.

Tig Bitties · Apr 10, 2014

jamezr said:
I think they said the same thing about the S4 when it was released.....then it went on to sell about 50 million?

I think Samsung openly acknowledged the S4 didn't sell as expected, and was sort of a let down. Even though it may have sold a whopping 50 million devices, I think Samsung had much higher projections originally. I think the S5 will be the same, maybe not matching numbers what Samsung would like to sell.

Overall I think this is for all smartphones now. Even Apple has said the iPhone seems to have plateaued a bit, not rising sky high each year.

We are reaching a saturation point. Like PC's a few years ago. Most average people are satisfied with their current smartphones, not itching to upgrade right away. If Joe Blow has a iPhone 5, he's not going to run out and get the 5S. If a lady has the Galaxy S3, and still working fine, no problems, most regular people aren't going to run out and get the new S5 right away, if they don't see a dire need to.

ucfgrad93 · Apr 10, 2014

Tig Bitties said:
We are reaching a saturation point. Like PC's a few years ago. Most average people are satisfied with their current smartphones, not itching to upgrade right away. If Joe Blow has a iPhone 5, he's not going to run out and get the 5S. If a lady has the Galaxy S3, and still working fine, no problems, most regular people aren't going to run out and get the new S5 right away, if they don't see a dire need to.

I agree. Another issue is that most phones are evolutionary in nature rather than revolutionary.

wilky76 · Apr 10, 2014

It's got to the point now where a smartphone such as the S3 still does everything the average person needs even after launching 2 years ago.

Not everybody wants or needs a top end smartphone the Moto G being prime example of this, as i see them everywhere and at least 4 people at work i know has one.

S5 is a good smartphone and look's alot better in the flesh than it does in pictures or video's and the screen really is superb, plus the camera is much better this time around aswell.

If i didn't have a Note 3, I would get the S5 over all the other smartphones launching in Spring.

MRU · Apr 10, 2014

I said this last year repeatedly in regards to flagship phones.

Contracts are getting longer resulting in majority of users only changing phone every two or three years.

Smartphone saturation / penetration in the west is near full, those that want a smartphone generally seem to be buying on contract or alternatively are buying less powerful models on pay as you go basis.

With flagships seemingly raising the pricing ceiling by 50 / $50 each year (retail price not subsidised carrier pricing) it's unlikely that the audience for $650-700 phones will carry on increasing year upon year.

The S5 is a great phone by the looks of it - but is it powerful enough to persuade those many purchasers who got an S4 to upgrade or sell off their contract phone to purchase a £530 phone off contract ? unlikely....

Most of us here are not representative of the general buying public, our purchasing and upgrading habits are far from the norm.

matjamca · Apr 10, 2014

I got confirmation of pre-order numbers today.

We have taken just 2,000 pre-orders and have more than enough stock to meet those pre-orders and sell to customers ordering on the day. That's a significantly lower number when compared to S4's that were pre-ordered before launch day.

It'll be interesting to see what happens.

The fact is, there are still rumours of a Samsung Galaxy F which may be replacing the S series as Samsung's flagship device. F for Flagship maybe? This may be putting people off committing to the S5.

Tig Bitties · Apr 10, 2014

matjamca said:
I got confirmation of pre-order numbers today.

We have taken just 2,000 pre-orders and have more than enough stock to meet those pre-orders and sell to customers ordering on the day. That's a significantly lower number when compared to S4's that were pre-ordered before launch day.

It'll be interesting to see what happens.

The fact is, there are still rumours of a Samsung Galaxy F which may be replacing the S series as Samsung's flagship device. F for Flagship maybe? This may be putting people off committing to the S5.

How many phone buyers are even remotely aware of this supposed "F" model ? Like 1% ? No way is that any reason the S5 pre-orders might be low.

I think smartphones have become like PC's, if your current phone is already good enough for texts, FaceBook, E-mails, phone calls, etc... Average Joe isn't going to run to the store and upgrade, unless their current smartphone is broke, or is acting up all buggy and slow. Otherwise people will just stick with what they have for now. For the average public, a Galaxy S3/S4 or iPhone 4S/ 5 is more than good enough for them. Like I said, unless their phone breaks or a cracked screen, I think phones released in the past 18 months are good and fast enough for the non tech geeks.

My Wife uses a Galaxy S4, she says she's very happy with it, and has zero need or want to upgrade it. She said what do I get by upgrading to a newer phone ? All she does is Text, e-mail, make phone calls, use GPS, and surf the web a little on it. The S4 does more than enough for her. My Wife used to have an S2 before the S4, only reason she got a new phone, was because she dropped it and cracked it, she said she barely notices any difference between the S2 and S4, no big upgrade in her opinion, does all the same stuff as the other phone.

Keep in mind, us tech geeks coming to websites like this are not the norm, we maybe make up 5% of the tech buyers, majority of buyers just have no clue.

matjamca · Apr 10, 2014

Tig Bitties said:
How many phone buyers are even remotely aware of this supposed "F" model ? Like 1% ? No way is that any reason the S5 pre-orders might be low.

I think smartphones have become like PC's, if your current phone is already good enough for texts, FaceBook, E-mails, phone calls, etc... Average Joe isn't going to run to the store and upgrade, unless their current smartphone is broke, or is acting up all buggy and slow. Otherwise people will just stick with what they have for now. For the average public, a Galaxy S3/S4 or iPhone 4S/ 5 is more than good enough for them. Like I said, unless their phone breaks or a cracked screen, I think phones released in the past 18 months are good and fast enough for the non tech geeks.

My Wife uses a Galaxy S4, she says she's very happy with it, and has zero need or want to upgrade it. She said what do I get by upgrading to a newer phone ? All she does is Text, e-mail, make phone calls, use GPS, and surf the web a little on it. The S4 does more than enough for her. My Wife used to have an S2 before the S4, only reason she got a new phone, was because she dropped it and cracked it, she said she barely notices any difference between the S2 and S4, no big upgrade in her opinion, does all the same stuff as the other phone.

Keep in mind, us tech geeks coming to websites like this are not the norm, we maybe make up 5% of the tech buyers, majority of buyers just have no clue.

Good point.

ucfgrad93 · Apr 10, 2014

matjamca said:
The fact is, there are still rumours of a Samsung Galaxy F which may be replacing the S series as Samsung's flagship device. F for Flagship maybe? This may be putting people off committing to the S5.

This is the first I've heard of a Galaxy F model. I doubt that is playing a role in the low pre-sales.

RMXO · Apr 10, 2014

Tig Bitties said:
How many phone buyers are even remotely aware of this supposed "F" model ? Like 1% ? No way is that any reason the S5 pre-orders might be low.

I think smartphones have become like PC's, if your current phone is already good enough for texts, FaceBook, E-mails, phone calls, etc... Average Joe isn't going to run to the store and upgrade, unless their current smartphone is broke, or is acting up all buggy and slow. Otherwise people will just stick with what they have for now. For the average public, a Galaxy S3/S4 or iPhone 4S/ 5 is more than good enough for them. Like I said, unless their phone breaks or a cracked screen, I think phones released in the past 18 months are good and fast enough for the non tech geeks.

My Wife uses a Galaxy S4, she says she's very happy with it, and has zero need or want to upgrade it. She said what do I get by upgrading to a newer phone ? All she does is Text, e-mail, make phone calls, use GPS, and surf the web a little on it. The S4 does more than enough for her. My Wife used to have an S2 before the S4, only reason she got a new phone, was because she dropped it and cracked it, she said she barely notices any difference between the S2 and S4, no big upgrade in her opinion, does all the same stuff as the other phone.

Keep in mind, us tech geeks coming to websites like this are not the norm, we maybe make up 5% of the tech buyers, majority of buyers just have no clue.

I agree but we might see some average joe's start to upgrade more often with the new carriers upgrade anytime plans but probably won't be as significant.

My GF is the same way, they only reason she's looking to upgrade from her iP4 is because it's starting to die and battery life sucks. She would honestly continue to use it if it weren't for the issues she's having.

My parents also are the same way, the only reason why they end up upgrading every year is because I hand me down my previous phone to them. Their the types to only upgrade when their phone dies.

Samsung S5 Pre-Orders Not Great

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