Samsung Galaxy Tab Sales Actually ‘Quite Small’

[rdowns]

I was under the impression that these were selling well. Shrug.

Samsung Electronics Co.’s Galaxy Tab, the company’s answer to Apple Inc.’s iPad, isn’t selling as well as the company has let on.

In early December, Samsung announced it had sold 1 million, declaring that sales were going “faster than expected.” Then, in early January, Samsung announced sales of 2 million.

But during the company’s quarterly earnings call on Friday, a Samsung executive revealed those figures don’t represent actual sales to consumers. Instead, they are the number of Galaxy Tab devices that Samsung has shipped to wireless companies and retailers around the world since product’s formal introduction in late September.

Pressed by an analyst at an investment bank, the Samsung executive, Lee Young-hee, acknowledged that sales to consumers were “quite small,” though she didn’t give a specific number.

In her comments, she used the terms “sell-in” to reflect Samsung’s sales to distributors and “sell-out” to reflect the distributors’ sales to consumers.

Ms. Lee’s response to the analyst:

“Well, your question was on sell-in and sell-out. As you heard, our sell-in was quite aggressive and this first quarterly result was quite, you know, fourth-quarter unit [figure] was around two million. Then, in terms of sell-out, we also believe it was quite small. We believe, as the introduction of new device, it was required to have consumers invest in the device. So therefore, even though sell-out wasn’t as fast as we expected, we still believe sell-out was quite OK.”

She added Samsung was “quite optimistic” about 2011 sales but wouldn’t provide a forecast. “As you know, the tablet is relatively new and we need to see how the market develops before we give any firm numbers,” Ms. Lee said.

The comments got little attention in press coverage of Samsung’s earnings report.

A Samsung spokesman in an email said Monday that most media accounts treat Galaxy Tab as “a noteworthy accomplishment.” He added, “I believe the company, overall, is on the same page.”

Link

 

[SmokeyRobinson]

So what sent Apples tablet share don to 77% from 95%?

 

[roadbloc]

So what sent Apples tablet share don to 77% from 95%?

 

[chrmjenkins]

So what sent Apples tablet share don to 77% from 95%?

Their sell-through to retail is being counted. The actual challenge in the tablet space from android is just now really starting with honeycomb coming. Sales of the xoom will be a good gauge.

 

[brentsg]

So what sent Apples tablet share don to 77% from 95%?

That only reflected sales of the tablets to distributors. It did not reflect consumer sales.

 

[rdowns]

So what sent Apples tablet share don to 77% from 95%?

Whoever released that report probably used shipments to distributors and not sale through to consumer numbers. Also, there are a lot of really cheap Android 7" pieces of crap out there, especially outside the US. Here's one example.

 

[Rodimus Prime]

Whoever released that report probably used shipments to distributors and not sale through to consumer numbers. Also, there are a lot of really cheap Android 7" pieces of crap out there, especially outside the US. Here's one example.

using the shipments to distributors is standard practice. Using units sold directly to consumers is near impossible to get exact numbers and a lot of retailers will not release the exact numbers or any numbers because they consider it trade secrets. Way to may varibiles to get an exect count. But units ship is a good way to get numbers over a longer term of time because what is in Warehouses does get sold before more are older. It just screwed up numbers early on but a few months down the road not an issue any more.

 

[rdowns]

using the shipments to distributors is standard practice. Using units sold directly to consumers is near impossible to get exact numbers and a lot of retailers will not release the exact numbers or any numbers because they consider it trade secrets. Way to may varibiles to get an exect count. But units ship is a good way to get numbers over a longer term of time because what is in Warehouses does get sold before more are older. It just screwed up numbers early on but a few months down the road not an issue any more.

That's not so. With computers, it's easy t know where you stand from a channel inventory perspective. Even Apple tells you what's in inventory. Hell, I had to report inventory to Apple when I was a reseller back in the 90s.

 

[Rodimus Prime]

That's not so. With computers, it's easy t know where you stand from a channel inventory perspective. Even Apple tells you what's in inventory. Hell, I had to report inventory to Apple when I was a reseller back in the 90s.

again to many variables involved. You can not always track it all the way down. A lot of places will not report back their current inventory. You only know sells disturber because you know those numbers are correct.

Like I said shipments to distributer is a fine way to tracking sells over a long term and if anything better than tracking consumers since it gives a much more steady rate. Plus a hell of a lot less info to track (aka cost).

Why bother tracking end results when over time the disturbers gives you the exact same information for a hell of a lot less money, time and cost. Less variables involved.

 

[mammadon]

I don't get how it's difficult to track sales to consumers, over sales to channels/intermediaries.

From what I understand, most personal computer makers as part of the contract with a reseller receive statistics of both purchases and sales. I was thinking recently of owning a computer store and being an Apple reseller, and I think this was one of the stipulations. Similar must be true of Samsung.

 

[rdowns]

I don't get how it's difficult to track sales to consumers, over sales to channels/intermediaries.

From what I understand, most personal computer makers as part of the contract with a reseller receive statistics of both purchases and sales. I was thinking recently of owning a computer store and being an Apple reseller, and I think this was one of the stipulations. Similar must be true of Samsung.

Of course it is. If it wasn't, Samsung wouldn't have said sales to consumers were "quite small"

 

[Rodimus Prime]

I don't get how it's difficult to track sales to consumers, over sales to channels/intermediaries.

From what I understand, most personal computer makers as part of the contract with a reseller receive statistics of both purchases and sales. I was thinking recently of owning a computer store and being an Apple reseller, and I think this was one of the stipulations. Similar must be true of Samsung.

it is more costly to get exact numbers but it is not hard to figure out if it is going to be small. Just have to grab a few data points to see a statical model.

All they need to do is get reports from a few major outlets and it gives them a pretty good idea what sells are going to be like. Exact numbers are only known on shipments to distributor. In that case you are the one who controls the counting and do not have to relay on reports from places you ship to.
On top of that it is few locations to grab the data from. Basically this means less of a chance of error. Over time units ships vs Unit sold will be become the same for tracking sells over the long term. Only time you see a spike is right after a new product is released. After that places do have to keep ordering to keep a stock on hand.

You have to look at it in terms of cost to what info they gain. It cost a lot more to get units sold numbers and they gain relatively little useful information. All they need to really do to get the same useful info for a lot less cost is go to a few places and get units sold info and from there it gives them all the info they need.

 

[*LTD*]

Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_2_1 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Mobile/8C148)

LOL Samsung stuffed the channel. And then their pockets.

I feel sorry for consumers who've been had by Samsung. It's a beta effort, if you can even call it that. The worst part is, Samsung didn't even care what state their product was in, nor what state the Android OS was in that got shoehorned inside it.

http://www.nypost.com/p/news/business/galaxy_tab_dim_bulb_KbD4K6OUjTC99SQn2efrsJ

That's quite a return rate.

 

[kdarling]

Samsung actually said "sales were quite SMOOTH", not small

The third party transcriber made a mistake. The Wall Steet Journal has noted the correct transcript.

What she actually said, was that Tab "sales were quite smooth".

You can hear it yourself on the original audio recording a little less than 2/3 in.

As for the Tab, I have one and it's a family favorite, especially for taking on outings or to restaurants. It's a perfect size for that. In a nice leather case, it looks like a daytimer. And it fits in a coat pocket. It's fast, reliable and we've even used it for an emergency video call with its front camera.

 

[maflynn]

As for the Tab, I have one and it's a family favorite, especially for taking on outings or to restaurants. It's a perfect size for that. In a nice leather case, it looks like a daytimer. And it fits in a coat pocket. It's fast, reliable and we've even used it for an emergency video call with its front camera.

A couple of my coworkers have the TAB and in fact one returned an iPad in favor of the tab. They like this better then the iPad. I think the smaller size is why they like it. 7" display is perfect for many business type tasks. Its small enough to fit in an over coat pocket, not too ungainly when taking it to meetings.

Personally, I prefer my iPad, but to each their own.

 

[chrmjenkins]

The third party transcriber made a mistake. The Wall Steet Journal has noted the correct transcript.

What she actually said, was that Tab "sales were quite smooth".

You can hear it yourself on the original audio recording a little less than 2/3 in.

As for the Tab, I have one and it's a family favorite, especially for taking on outings or to restaurants. It's a perfect size for that. In a nice leather case, it looks like a daytimer. And it fits in a coat pocket. It's fast, reliable and we've even used it for an emergency video call with its front camera.

I think a fair contention could be made that even though we're comparing apples to apples (units sold to retail), the fact that the iPad is still selling out in many locations would give confidence that the sell-through rate is going to be higher on the iPad.

Also, emergency video calls?

 

[roadbloc]

I've used both the GalaxyTab (friend has one) and the iPad (had a bit of a poke at it while passing an Apple Store), and I think they are both have the minerals to make it to "top dog". I think it will be simply down to what users prefer. Since I appear to be living in an Android dominated area, I'd say the Tab has more chance due to the lower price and the wide range of choice both hardware and the software provides.

The average user likes choice. iPad and iOS provides none.

 

[gnasher729]

That's not so. With computers, it's easy t know where you stand from a channel inventory perspective. Even Apple tells you what's in inventory. Hell, I had to report inventory to Apple when I was a reseller back in the 90s.

I think the main difference is whether it is an established product or not. For example, there is a certain number of MacBooks in stores but not sold yet, but with several years of experience with sales numbers Apple will have a rather good estimate how long it will take to sell them, and the shops have a rather good idea how many to order. I think Apple's last quarter ended Dec. 25th; Apple will have a very good estimate how many unsold MacBooks there are in the channel.

With the Samsung tablet, nobody had the slightest clue how many they were going to sell to end users.

 

[kdarling]

Also, emergency video calls?

Well, we considered it an emergency (meaning not normal) call

Had a relative in the hospital and her two year old at home was missing seeing her Mommy (and vice versa). What to do, what to do?

Then we realized the Galaxy Tab my daughter was playing Angry Birds on while we were waiting, had the front camera. So we downloaded Fring to the Tab and videocalled her husband's EVO at home. The big screen helped the relative see plainly. Problem solved. Child happy.

 

[mammadon]

I think the main difference is whether it is an established product or not. For example, there is a certain number of MacBooks in stores but not sold yet, but with several years of experience with sales numbers Apple will have a rather good estimate how long it will take to sell them, and the shops have a rather good idea how many to order. I think Apple's last quarter ended Dec. 25th; Apple will have a very good estimate how many unsold MacBooks there are in the channel.

With the Samsung tablet, nobody had the slightest clue how many they were going to sell to end users.

A large company as Samsung must have a stack of marketing data regarding their device. No company irrespective of industry these days doesn't release a new product without determining the demand and the market segment who will buy it. I think one thing in the iPad's favour is that it's Apple. The brand alone makes sales. Samsung has long made electronic goods, but never until recently has been a computer maker.

 

[gkarris]

I don't know if I've been looking hard enough - but it seems like a good product that costs less than an iPad.

But, the places I've seen has them sold with a REQUIRED 2 year data contract.

What if you want to use it for Wi-Fi? Or a pay as you go data plan?

Maybe this is why sales are small?

 

[belvdr]

The third party transcriber made a mistake. The Wall Steet Journal has noted the correct transcript.

What she actually said, was that Tab "sales were quite smooth".

You can hear it yourself on the original audio recording a little less than 2/3 in.

Maybe this is why sales are small?

That's a misquote. It was "smooth". rdowns needs to get on the ball and update his thread title.

Anyhow, Verizon has it with month-to-month service. However, approach with caution. I read that they charge you reconnect fees if you wish to skip a month or two. Additionally, you can suspend the data plan as well, but they charge you a fee for that too.