There is no doubt that the first half of this year, the most popular intelligent mobile phone the most promising basically non Samsung Galaxy is S7. However, from Pacific Crest analyst Mitch McConnell, although the popular belief is that galaxy S7 sell very well, but with the passage of time, now the momentum has declined, began to face known as the "sell" problem. So, what exactly is the analyst McConnell Mitch come to this point of view? What does he think of Samsung's smart phone business?
The surge in demand from the early stage is due to aggressive promotions"
McConnell Mitch said that Samsung's S7 Galaxy series smart phone first sales demand better than expected, mainly because Samsung launched a very variety of positive promotional activities". For example, several little-known promotional program:
- as long as the rush to buy and scheduled S7 Galaxy or Edge S7 smart phones, Samsung are selected to give S2 Gear smart watches or VR Gear virtual display helmet.
Operators in some areas, it is similar to the "buy one get one free" promotion of S7 Galaxy series of smart phones, attractive.
Mitch McConnell, and then put forward the above two Samsung's promotion program said that Samsung actually to the surface of the work do well, also buy survey, especially for customers have purchased equipment, to cover up the "tendency of weakening demand" or "inventory more to increase the fact.
In fact, Samsung released Galaxy S7 and Galaxy S7 edge two smart phones a month time, consumer demand for flagship Samsung has already begun to cut, Mitch McConnell, according to some said now Galaxy S7 than last year's Galaxy S6 without any substantive changes, even worse than last year. "We note that the inventory is not so easy to deal with."
Samsung Galaxy S7 official propaganda sales dingguagua?
Some time ago, Samsung announced its initial financial results for the latest quarter, is expected to reach $. These figures show that Samsung's revenue and profits compared to the same period last year rose, but in terms of the number of the gap is very small.
This was the analysts believe that growth must rely on the new release of the galaxy S7 Series of smart phones, but to be honest, this year's background is different compared with the same period last year, because the galaxy S7 compared Galaxy S6 shipment time listed on the early months, this phase as important. So, the results of the next quarter, Samsung may be more concerned about, then you can really explain what is the contribution of S7 Galaxy.
Samsung smart phone sales problem is not easy to solve
Android smart phone market competition is getting fierce, now in the market quotient of manufacturing sales of smart phones numerous and most provides the same function, Samsung's Galaxy S7 does have some strengths, however, the price is very high, impact on sales. Is more important, the actual Samsung has significantly reduced the flagship of the price, would rather endure lower profit margins and pursuit of sales. This means that in the crowded smartphone market, Samsung with mobile phone business to make money will become increasingly difficult.
Samsung may prefer to do a qualified, positive supplier, its storage business, including DRAM and NAND flash, and other smart phone key components, such as the screen and the processor, perhaps, more useful to Samsung long-term sustained profitability.