Samsung is having a hard time shaking off the image of a failing company. In the latest turn of events, a rumour that the company is cutting Galaxy S6 and S6 Edge production by 16 per cent has started circulating around the Web, suggesting that Samsung is having a hard time selling its latest flagship phone.
However, I must put the emphasis on “rumour”, as the Galaxy S6 and the S6 Edge have both performed fairly well in terms of sales, and the company is getting ready to ship more phones to the market.
Samsung said it had received more than 20 million preorders for the Galaxy S6 and is targeting 70 million units by the end of this year.
Even if it is true, the production cut doesn’t necessarily indicate any financial trouble on the horizon for Samsung, Sammobile writes in a report.
“With financial woes due to the decline of the Won (Korean currency), as well as less-than-expected sales for Samsung in 2014, the company could very well slow down its production so as to not manufacture more smartphones than it sells.”
Samsung’s goal this year is to use its semiconductor business, along with the sale of its SUHD TVs (running Tizen), the Tizen-powered Z1, as well as its Android smartphones (Galaxy S6, S6 edge, Note 4) and tablets (Tab S 10.5-inch and 8.4-inch models, NotePro 12.2, etc.), and its multiple budget-friendly models is to sell as many as possible (and lose as little as possible), Sammobile writes.
Samsung’s success makes this rumor one to be taken with a grain of salt.