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Samsung cuts Galaxy S4 orders, it is time to focus mid-range market



For the sales of Samsung Galaxy S4, Samsung get their confidence, bluntly to sell 100 million units. But the bad news is last week, sales of the Samsung Galaxy S4 is less than expected, including JP Morgan investment bank, including several reminders, although listed in the first quarter sales gratifying, but the next quarter sales slowing, lower than expected. The news led to Samsung's shares fell 6 percent, and Apple, as reflected in the stock price less than expected sales decline on.

Samsung Galaxy S3 with solid growth in sales continued contrary, Galaxy S4 in the first 27 days sold 10 million units, unusually hot, but then weak down. Close to the supply chain, Taiwan media DigiTimes recently got the exact data, say that the number of components that the Samsung has ordered for Galaxy S4 is around 20 to 25 million, may be less than expected 25 million, and next quarter 20 million, lower than 30 million expected. The third quarter data reduced by 1/3, which is not a small number.

Galaxy S4 sale less than expected because the competitors are in outstanding performance. HTC One in the first month and a half already get 500 million units sold, about a quarter, they sold 10 million units. In addition, Sony, LG, Huawei's are pushing their best on high-end market in force, all of the manufactures hope that they can stop the growth of Samsung.

But this does not explain the Samsung difficulties, in fact, this decline in sales due to the larger high-end market saturation. For example Apple, iPhone sales up in first quarter 2013 for 47.8 million units, a quarter in the subsequent rapid decline to 37.4 million units, iPhone, after several years of frenzied growth reached a peak, and then follow the listed sales law. Samsung Galaxy S4 for expected sales growth, it rise, but did not fall, and if this is in the early market, this situation is normal, but if saturated, then the decline is inevitable. This means the high-end market has become saturated, is a shift in the relationship.



Earlier in the ARM offers smartphone market at different price interval graph can be seen that the proportion of high-end market early in the market is high, but as time goes by, the high-end market growth is very limited, while the low end is at the outbreak of the situation. The introduction of the ARM A12 architecture, it is positioned mid-market of $ 200-350.

Long term, low-cost technology electronic equipment is unavoidable, the high-end market, despite huge profits, but the capacity is very limited, the market is dominated by the low-end. Interestingly, Samsung introduced a low-cost Galaxy S4 mini, HTC is also about to release HTC One mini, this is the low-cost market dropping to the rhythm. Motorola CEO Dennis Woodside have expressed a potential mid-market views, Moto X will launch the respective price of smart phones.

So, it becomes a matter of course cheap iPhone yet?

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