Samsung Electronics Co. Ltd. (Korea: SEC) is one of the more vertically integrated companies in the consumer electronics marketplace, but the Korean company still managed to run into supply problems with a key component used for its latest smartphone, the Galaxy S III.
News reports indicate Samsung failed to anticipate the roaring demand it has now recorded for the Galaxy S III and was unable to ship as many as 2 million units of the device to telecom service providers in Europe, North America, and Asia.
Samsung expects to ship up to 10 million of the Galaxy S III in the current quarter, making the device its fastest seller. The launched the Galaxy S III ahead of the likely introduction of an updated Apple iPhone expected in the fall, and the success of Samsung's latest device should help the company continue to maintain its position as the world's biggest vendor of both smartphones and wireless handsets.
In an attempt to smoothe problems in its supply chain that contributed to the inability to meet overall demand, Samsung said it sent employees to all component suppliers to ensure delivery targets were being met. Reuters reports that the company expects soon to put the component shortage problem behind it. Analysts who slashed Samsung's smartphone shipment for the June quarter believe the company should recover quickly in the third quarter and have raised their estimates for the company.
Like I said earlier the Galaxy brand is gaining momentum in the market because it caters to all market segments, i.e. from low end smartphones to high end SIII series. And, with a comparitive pricing model it seems to be doing well in the market. It may be a threat to the iPhone but I personally think that not many iPhone users will switch to Android. I have a few friends who are iPhone enthusiasts and having asked them about switching to Android, I have always got a negative answer.
I think S3 is not that good as its been shown by Samsung when you compare with the technology and the ability of Apple.
@nimanth.d, I have read many positive reviews about samsung S3. It has great performance, excellent camera quality, stunning display and other rich features.I am not sure why you think its not comparable with Apple ?
People are now increasingly trusting the Galaxy S brand
@syed, I totally agree with you. Galaxy brand is in the market from couple of years and it has some great features. Best part about Samsung products is that conumers are getting the best features at reasonable cost. I am sure Galaxy is real threat to Apple iPhone series.
Well otfo me. I feel Apple is the best. I think its just a matter of time until apple compes with the latest. Untill then S3 will be on top. Anyway thats how the market works.
@nimantha.d: Apart from the marketing gimmick it has to do with the record breaking sales that SII did in the previous year. People are now increasingly trusting the Galaxy S brand and want to try out any new version that is available on the market.
Well I think its more of a hype rather than the sales turnover for s3. They created the hype and people are falling for it. A typical marketing gimmick but a good one.
@Himanshugupta: You are certainly correct about consumers making the purchase decision on the basis of cost, compatibility, OS platform and their friends circle. For some one of these factors would weigh much higher than it does for others. Similarly, for most Apple users that I have seen the platform, i.e. iOS is the decisive factor. I may be wrong but this is what I have actually seen here.
@tirlapur: I agree with you that most people are waiting for the iPhone 5 launch. However, I am not sure if the features dissapoint the market would go for SIII. Over the years I have barely seen people leaving the iPhone for other phones. So, probably I might be an iPhone lover but I think iPhone 5 will still do good business.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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