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Shakeup after Samsung sells 40% fewer Galaxy S5 smartphones than expected

Tue, 25 Nov 2014

Samsung's head of mobile, JK Shin, could be rolled following sales that failed to meet bullish projections, The Wall Street Journal reports.

Sighting un-named sources close to the matter, the Journal says Samsung produced about 20% more devices than it did of the Galaxy S5’s predecessor, basing the numbers on a survey of its carrier partners around the world, who were asked to predict demand but who weren’t on the hook for any unsold devices, according to the person. That led to merchandise piling up in warehouses, the Journal says, forcing Samsung to increase marketing expenditures to unload the devices.

In all, Samsung sold about 40% fewer Galaxy S5 smartphones than expected according to sources, with about 12 million units sold to consumers in the first three months since April compared with about 16 million units for the preceding flagship phone, the Galaxy S4. The dip in Galaxy S sales contributed to a fall in third quarter profit and market share.

The company has already announced several steps to shakeup its smartphone division, Computerworld says, including reducing its number of models by 25% to 30%, and introducing a new Galaxy with an all-metal case.

Samsung declined comment.

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Shakeup after Samsung sells 40% fewer Galaxy S5 smartphones than expected
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