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  • Samsung Inflates Galaxy Tab Sales, Gets Busted


    After claiming to have sold two million Galaxy Tabs, Samsung has been forced to admit that the number was exaggerated. A financial analyst pressed a Samsung executive on the numbers during an earnings call, finally eliciting the acknowledgement that the number represented how many supposed "iPad-killers" were sold to carriers and other resellers, not to actual users. The exec declined to provide hard numbers, but insisted that sales to real people were "quite OK." Meanwhile, a study has shown that many of the people who did buy Galaxy Tabs aren't happy with them: they are apparently being returned at a rate eight times higher than the iPad's.

    In early December, Samsung announced it had sold a million Galaxy Tabs, and bragged that sales were going "faster than expected." Then, in early January, Samsung announced sales had reached two million. This set off a predictable round of crowing from journalists and observers who all but declared the iPad dead. One analyst predicted that Apple will "have less than 50 percent of the global tablet market" two years from now. "I think that's a certainty," said Neil Mawston, director at Strategy Analytics. His firm published a report that gave Android tablets a quarter of the market in the fourth quarter of 2010, based on the reported Galaxy Tab sales.

    Then came Samsung's quarterly earnings call on Friday, and Android fanbois sensed a great disturbance in the force... as if millions of voices suddenly cried out in terror and were suddenly silenced.

    Samsung executive Lee Young-hee said the 2 million represented what she called "sell-in:" sales to distributors and wireless carriers, which she said "was quite aggressive." The "sell-out" - distributors' sales to consumers - she said, "wasn't as fast as we expected" because "it was required to have consumers invest in the device." (wow, really?) Nevertheless, Ms. Lee insisted that "we also believe [the "sell-out] was quite smooth," but refused to give any specific totals, saying that "the tablet is relatively new and we need to see how the market develops before we give any firm numbers."

    It seems obvious that those numbers are not that impressive, or one would think that Samsung would rush to publicize them as loudly as they had the original misleading report. The problem may actually be worse than that, though: ITG Investment Research says people are returning their Galaxy Tabs at an abnormally high rate. Crunching numbers from nearly 6,000 wireless stores in the US, ITG found that as many as 16% of all Galaxy Tabs sold from when the device first went on sale in November through January 15th were returned. The Wall Street Journal notes that he return rate for the iPad at Verizon since its debut on the carrier is just 2 percent.

    Source: AppleInsider
    This article was originally published in forum thread: Samsung Inflates Galaxy Tab Sales, Gets Busted started by Paul Daniel Ash View original post
    Comments 59 Comments
    1. McMichael96's Avatar
      McMichael96 -
      Wow. You know not many people even new what a tablet was until iPad came out...
    1. jeffhuys's Avatar
      jeffhuys -
      Hahahaha, nice.
      Thet just need to accept that Apple isn't beaten that easily.
    1. CX3NT3_713's Avatar
      CX3NT3_713 -
      I KNEW IT ALL ALONE,,, Lol come on' it's a sumsung ,
    1. dennder's Avatar
      dennder -
      Lots of people accuse apple of being "a shepherd" company, and that their customers are mostly (if not all) just mindless zombies and fanboys, yet, somehow someway "solid" companies like Samsung "exaggerate" their sell reports...

      Who's worse? The one that do not disagree that it milks money, or the one that lies straight in to the eye?
      From my point of view, apple is a win-win combo.
    1. eg6motion's Avatar
      eg6motion -
      Quote Originally Posted by dennder View Post
      Lots of people accuse apple of being "a shepherd" company, and that their customers are mostly (if not all) just mindless zombies and fanboys, yet, somehow someway "solid" companies like Samsung "exaggerate" their sell reports...
      yeah, that's one of my favorite arguments. Apple, with their niche market share that is doing rather well, is somehow described as the flock. Well if MS Windows still has 90+% marketshare in the world... wouldn't it be better suited to call the "majority" the flock?
    1. Dizi's Avatar
      Dizi -
      None of my friends or co-workers have one.

      Enough said.
    1. se23's Avatar
      se23 -
      Yep it's a samsung and I'm sorry to say that they are "begging it" and I dnt touch them anymore! My mate who works in I.T told me in late 2010 I was silly getting iPad as he had inside knowledge that the samsung tab is better and he's waiting for it.... Last week he asked me to get him an iPad for the price I got mine looooooool
    1. drosera's Avatar
      drosera -
      fanbois sensed a great disturbance in the force... as if millions of voices suddenly cried out in terror and were suddenly silenced.
      That made my day. Thank you.
    1. jmillermcp's Avatar
      jmillermcp -
      Quote Originally Posted by Paul Daniel Ash View Post
      Then came Samsung's quarterly earnings call on Friday, and Android fanbois sensed a great disturbance in the force... as if millions of voices suddenly cried out in terror and were suddenly silenced.
      ROTFLMWAO!!! Funniest thing I've read in a while. Fully explains the massive price drop on Sprint's network.
    1. blueblaze4444's Avatar
      blueblaze4444 -
      Bad Samsung
    1. shinygerbil's Avatar
      shinygerbil -
      fanboi this, fanboi that...It's not necessary. The Galaxy Tab was a poor product, that is all. It's not a "death knell for Android" or a sign that "Apple are the best" or any such exaggerated nonsense. It's just some cold hard sales figures, from which people infer silly and overblown things.

      I do wish the internet didn't turn everything into a fanboi slanging match. 2011 will still see Apple facing stiff competition on all sides - but this is only good news for consumers who will have greater choice and better value for money.
    1. allanes5's Avatar
      allanes5 -
      Oh this is sad, sad, sad. Really Sad Samsung.
      Another round for Apple!!!!!!
    1. Nielsenius's Avatar
      Nielsenius -
      Watering their stock are they? That's a no no.
    1. Dazz187s's Avatar
      Dazz187s -
      Love apple and
      The iPad, like I upgraded to the iPhone 4, and look at that hd pic I took today.
    1. xxhorseriderxxx's Avatar
      xxhorseriderxxx -
      TBH, the tablets on the market right now are a total waste of money. If I bought a tablet, I would expect it to be a fully fledged computer running a full operating system. Heck, Macbooks are really pretty thin, and if they could bump the specs up more and fuse the screen into the keyboard making a tablet capable of being hooked up as a desktop, I would buy it. As of now, I am disappointed in tablets that are out since they're really only stripped down laptops. I want the power of a home computer on a tablet, not some piece of junk that sucks at games and photoshop but can be put it my backpack and used in class for note taking.
    1. KartRacer's Avatar
      KartRacer -
      The iPad is still too expensive (for me) for the limitations it has. It's too heavy, not enough storage space, no file browser, can't use it OOB without setting the damn thing up via computer. The list goes on. If it were around 200 I'd snap one up, but with a 16gb (only!) version without n wifi coming in at 500 bucks that way too rich for me. There isn't a reason to own one for me since I have a 17 inch MPB unibody and an iPhone 4. At that price there's nothing it does better than either one.
    1. Rob2G's Avatar
      Rob2G -
      Quote Originally Posted by xxhorseriderxxx View Post
      TBH, the tablets on the market right now are a total waste of money. If I bought a tablet, I would expect it to be a fully fledged computer running a full operating system. Heck, Macbooks are really pretty thin, and if they could bump the specs up more and fuse the screen into the keyboard making a tablet capable of being hooked up as a desktop, I would buy it. As of now, I am disappointed in tablets that are out since they're really only stripped down laptops. I want the power of a home computer on a tablet, not some piece of junk that sucks at games and photoshop but can be put it my backpack and used in class for note taking.
      So you want a thin tablet that's as powerful as a desktop that you can dock and turn in to a desktop?......... Well besides that super high price and company would charge for that I don't think it could be done. Desktop CPUs generate alot of heat, and putting that behind a screen with ram and everything else that generates heat wouldn't work. To keep it thin there wouldn't be enuff room for ventilation. My laptop all ready get quite warm on my lap and it has more room for ventilation. I just don't think it's possible right now IMO
    1. jmillermcp's Avatar
      jmillermcp -
      Quote Originally Posted by KartRacer View Post
      The iPad is still too expensive (for me) for the limitations it has. It's too heavy, not enough storage space, no file browser, can't use it OOB without setting the damn thing up via computer. The list goes on. If it were around 200 I'd snap one up, but with a 16gb (only!) version without n wifi coming in at 500 bucks that way too rich for me. There isn't a reason to own one for me since I have a 17 inch MPB unibody and an iPhone 4. At that price there's nothing it does better than either one.
      Too heavy? 1 lb is too heavy? It's a sad day in America when people start complaining that a pound is too heavy.

      The only setup that's required is an initial plug-in for activation that takes literally 10 seconds and that can be done at the Apple store upon purchase.

      File Browser? It's not Windows, why would you need one?

      Sorry but $200 won't get you much of a tablet and yes, all models have wirelss-N.

      On your 32GB iPhone, how much free space do you have? How much of it's used space is music? Will you really be using the iPad as another music player when your iPhone fits in your pocket?
    1. Nickaroni22's Avatar
      Nickaroni22 -
      Galaxy, iPad is your daddy, don't lie to your daddy!
    1. n00neimp0rtant's Avatar
      n00neimp0rtant -
      The Samsung Galaxy Tab is a bad tablet.

      Android 2.2 on a tablet, is a bad tablet.

      A 7-inch screen on a tablet, is a bad tablet.

      ...

      Honeycomb is a COMPLETELY different story; so much so that if Android had the same tablet developer capacity as iOS, I would PREFER an Android tablet to my iPad. IMHO the best tablets are not blown-up phones, nor are they shrunken-down PCs. And if you've seen video of Honeycomb or even used it yourself on a tablet, you'll (hopefully) realize that Honeycomb is not either of those; it is its very own UI, and finely tuned for a tablet experience.

      [ame=http://www.youtube.com/watch?v=srWt7hSwmlQ]YouTube - Android Honeycomb[/ame]