Telecom & Wireless

Can Samsung's New Galaxy Sell 100 Million Units to Challenge iPhone?

Samsung will soon release its new smartphone, which will probably be called the Galaxy S5. Based on the analysis of experts who follow the industry, the S5 will need to sell much better than the S4, the company’s current flagship. The S4 sold below expectations. If Samsung wants to prove it has come to market with a better device, the new Galaxy’s sales cannot lag well behind those of the Apple Inc. (NASDAQ: AAPL) iPhone, its primary rival. The new Samsung device will need to sell close to 100 million units to make it the leader in the global smartphone industry, or at least a worthy opponent to its only rival.

Based on an analysis by Bloomberg, the Galaxy S4’s sales were poor compared to the iPhone’s:

Since its release in April, Samsung has sold 63.5 million units of the S4, which features a 5-inch screen and 13-megapixel camera, according to the median estimate of three analysts surveyed by Bloomberg News. That compares with 65.6 million for the predecessor S3, according to the analyst survey. Samsung doesn’t disclose shipment data for individual devices.

In Apple’s most recent quarter, it posted impressive sales of the iPhone that beat the figures from the previous year:

The Company sold 51 million iPhones, an all-time quarterly record, compared to 47.8 million in the year-ago quarter.

Apple likely will release a new iPhone 6 sometime between now and year-end. The Samsung Galaxy 5S will be in the market several months before that, which could help boost sales. However, if the past is any indication, the new iPhone will suck demand for other smartphones out of the market.

Apple’s annual sales pace for the iPhone is about 200 million units, and a new model could increase that rate. If the Galaxy 5S is going to be considered a success, it may not have to top that number. However, a showing of 60 million unit sales will indicate that Samsung has been unable to build a better iPhone.

 

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