updated 08:25 pm EDT, Thu June 20, 2013
Korean news agency claims that orders have unexpectedly fallen for two months
Reports are circulating that due to a mismatch in parts orders to units sold, manufacturing plants for the Galaxy S4 are going to see a reduction in orders. Sources familiar with the matter are claiming that Samsung is planning to reduce the parts orders for production of the new model by up to 15 percent, an unusual move for a brand new model and -- if true -- reinforcing speculation that the flagship S4 hasn't done as well as originally projected.
The claim published at etnews says the July parts order for the Galaxy S4 would translate into 6.5 million new S4 handsets. April's order generated 10 million handsets, and May's created 12 million phones. It is unclear how the sources derive a cut of "up to 15 percent" from the known production numbers, apart from a backlog of parts due to slower-than-expected early sales. The Galaxy S4 did not simultaneously release on all carriers, and added major carriers in the US only last month.
Samsung CEO Shin Jong-kyun refuted a report from JP Morgan noting poor sales of the Galaxy S4 handset. To a group of journalists, the executive said "I can say sales of the Galaxy S4 smartphone are fine. It's been selling well," after a meeting with Samsung affiliate presidents.
"The [JP Morgan] report was based on its own analysis," he continued. "Probably, the bank may have corrected its previous bullish estimate about the S4 sales." Jong-kyun did not cite any specific sales figures, and Samsung tends to report only shipments rather than actual sales to end-users, which adds to the confusion over how well the S4 is actually doing.