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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. Zokunei's Avatar
      Zokunei -
      Quote Originally Posted by Mikey724 View Post
      I had the Samsung wave and it was terrible for receiving texts and emails a couple of days late...know doubt the galazy will be the same pile of crap.Nice phone to look,but the iphone leeps ahead of it bigtime...
      My sister's Samsung has the specs of a 3G, but even a 3G on iOS 4 can't possibly run as bad as this thing.
    1. steve-z17's Avatar
      steve-z17 -
      Oh Samsung, we know know you're number 2 to the iPad and that you think your catching up...but this is just sad! When the iPad 2 comes out the G Tab will be blown away even more
    1. krosis's Avatar
      krosis -
      Quote Originally Posted by CaptainChaos View Post
      Wow. Another my processor is bigger than your processor thread.
      I actually lol'd when Rob's post bragging about his computer was visibly the first post where he started tagging on his "show off my Internet speed" signature. Can't hold anything back when your geek-cred is threatened!
    1. saifeeab's Avatar
      saifeeab -
      is this just another apple-sponsored report trying to prove everything else out there is inferior or un-worthy. i agree iPad started the Tablet PC trend but i also know that in my country samsung galaxy has also got favourable reviews.
    1. krosis's Avatar
      krosis -
      Quote Originally Posted by saifeeab View Post
      is this just another apple-sponsored report trying to prove everything else out there is inferior or un-worthy. i agree iPad started the Tablet PC trend but i also know that in my country samsung galaxy has also got favourable reviews.
      An "apple-sponsored report"?? This was revealed on a Samsung earnings call. You must have some pretty elaborate conspiracy theories.
    1. steve-z17's Avatar
      steve-z17 -
      Quote Originally Posted by saifeeab View Post
      is this just another apple-sponsored report trying to prove everything else out there is inferior or un-worthy. i agree iPad started the Tablet PC trend but i also know that in my country samsung galaxy has also got favourable reviews.
      Lol yeah...not sure where you're gettin that from...
    1. Rob2G's Avatar
      Rob2G -
      Quote Originally Posted by krosis View Post
      I actually lol'd when Rob's post bragging about his computer was visibly the first post where he started tagging on his "show off my Internet speed" signature. Can't hold anything back when your geek-cred is threatened!
      My internet speed has been in my sig for awhile, And no I cant Hold Back.. I need my geek-cred. LOL.
    1. EskimoRuler's Avatar
      EskimoRuler -
      that really bad when you have to try make your sales seem beter than they really are. I have yet to use one of these tablets yet so i cant say much about them, i am very content with my ipad, it fits into my life for what i need and since i already have a mac and iphone, it sync right up with all the contacts i already had and everything else, this would be the biggest thing for me
    1. Retrolock's Avatar
      Retrolock -
      Samsung is in a cut-throat business. It's definitely poor judgement to report their "inflated" sales to the public, but you really can't expect honesty if a company wants to sell you their products. Apple isn't always truthful when they want you to buy their gadgets.
    1. iPhoneThereforeIAm's Avatar
      iPhoneThereforeIAm -
      Quote Originally Posted by DRFP View Post
      Thought about this since yesterday......... Logic not emotion

      Sales? If a company like Apple or Samsung sells a product outright to another company or individual, Not on consignment but sell, then is that not SALES?

      Users, people who bought or are using the product in real life.

      So if the product is sold ( not consigned) is that not "Sales" or Sold?

      If a Carrier buys the product to resell or give to a user is this not a Sale to Apple or Samsung, regardless of service or warranty?

      Consignment, I agree, is not a sale.

      Apple reports in two ways traditionally

      Sales and Users.

      Users outnumber Sales in the years after Iphone 1g and it is true going forward with Ipad now.

      I think attacking Samsung for Is a Fail,

      Samsung said SOLD, then they get attacked for users, two different things

      Yet people are so into being "Fanboys" that they will do anything to prove one product is better then the other.

      Ipad may be a better product but this nonsense is just silly


      Ipad is better and that should be enough

      (On a side note Staples returned their Android Pads because of inferior quality, I don't know if they were Samsung or not but it happened)
      Doesn't matter what happens within the supply chain.
      Anyone can sell ten billion units to wholesalers - but until a consumer has bought one, you haven't sold $h*t.

      Yes, Samsung's Tab failure is a bit pitiful - but they garner no sympathy because they demonstrate such stupidity in trying to be first, like some moronic, headless chicken.

      Serves the phunkers right, I say.
      Hope it cost them a fortune!

      He-hehe
    1. iPhoneThereforeIAm's Avatar
      iPhoneThereforeIAm -
      Quote Originally Posted by DRFP View Post
      Hey I agree with the Users is a win
      and the sales is a fail

      My problem is attacking a company over sales
      Why do we need to?
      Attack them over Users, the problems with sales will show when a company who bought the failed ANdroid pads can't get rid of them if they pay people.............Thats my point, in time it will happen anyway.

      Ipad should be focused on their own sales and development.

      And of course Users.
      It may be a win for you personally - but since Users are buyers, the sales figures say that this is a fail on both fronts.

      Personally, I think Android's a waste of space.
      I'm one of the 16% that returned their Galaxy Tabs.
      Why ?
      Because it's just a cruddy user-experience and you have to reformat the phunking thing every other day if you install any apps.

      Android has a VEERY long way to go before Apple need to get worried.
      The only thing that Android's succeeded in doing so far, is deepening people's appreciation of iDevices.

    1. krosis's Avatar
      krosis -
      Quote Originally Posted by DRFP View Post
      Hey I agree with the Users is a win
      and the sales is a fail

      My problem is attacking a company over sales
      Why do we need to?
      Attack them over Users, the problems with sales will show when a company who bought the failed ANdroid pads can't get rid of them if they pay people.............Thats my point, in time it will happen anyway.

      Ipad should be focused on their own sales and development.

      And of course Users.
      The reason people have a problem with it is that usually in this industry sales means end user sales. When talking about sales to distributors, it's usually qualified as such. I think PS3 move or winPhone7 sales were like that (correct me if I'm wrong), and I remember seeing sales to resellers, not customers being mentioned anytime specific numbers were used.

      Samsung is taking some heat for talking up good sales numbers, and only qualifying it after being pressured about it during an earnings call.

      So it's really not about comparing it to an iPad at all, it's about samsungs sales numbers being better than expected, then the revelation that the reason for the numbers being good was that it was channel sales, not consumer sales. In most retail sales, there is flexibility for the retailer to return unsold product to the manufacturer if it doesn't sell. So there is a reason to distinguish between the two numbers. Channel sales don't represent customer demand, end user sales do.

      So while Samsung may indeed have "sold" them, they were intentionally misleading as the two different numbers mean different things to analysts.
    1. krosis's Avatar
      krosis -
      Quote Originally Posted by DRFP View Post
      To say end sales=users is still not the same as #users
      I'm not sure that anyone has said that, or how it relates to this bit of news? The distinction being made here is between sell-in and sell-out, not between sales and # of users.

      The end-user sales number is important not because it represents a user count in any way, but because until a unit is sold to an end user, it's just a box sitting on a shelf waiting to be returned to the manufacturer as "unsold".
    1. KingBiznotch's Avatar
      KingBiznotch -
      Samsung refutes high Galaxy Tab returns, says rate is 'below 2 percent' -- Engadget

      I own both Galaxy Tab and iPad - and this is simply bad reporting. If you're going to report about a competing product, then update your posts once changes to the story occur.


      Quote Originally Posted by Paul Daniel Ash View Post


      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
    1. iPhoneThereforeIAm's Avatar
      iPhoneThereforeIAm -
      ... then it MUST be 2% - because we know Samsung never lies.
    1. KingBiznotch's Avatar
      KingBiznotch -
      Quote Originally Posted by iPhoneThereforeIAm View Post
      ... then it MUST be 2% - because we know Samsung never lies.
      Right, because Samsung is going to lie about sales and returns, in other words, give out false information which could sway or affect stock prices - because a couple of gadget websites reported on some random company called " ITG Investment Research"...

      So let's review this again - Samsung lies, which could get it investigated by Federal Trade Commission, along with opening the door to many law suits and investigations - to squash something that an independent firm reported?

      Regardless, since MMi cannot and did not confirm the article regarding the 16% return rate, it's not upto MMi to decide whether samsung is lying or ITG Investment Research is lying .... if you're going to report on one unconfirmed 'research' - then you ought to update your articles with the other side of the story.

      Take a lesson from SUCCESSFUL websites, such as Endgadget, for example:

      Samsung experiencing a 16 percent return rate on the Galaxy Tab? (updated: Samsung responds!)
    1. CaptainChaos's Avatar
      CaptainChaos -
      It doesn't matter if vendors move the 2 million units to the public or not. Samsung got paid. So, they sold 2 million units.
    1. KartRacer's Avatar
      KartRacer -
      Quote Originally Posted by jmillermcp View Post
      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. Yes, 1 lb is too heavy. Try reading with it in bed. Try holding it with one hand while reclining in a chair. It's too heavy, not by a massive amount but it needs a little weight reduction. I've never talked to anyone who's had one and didn't remark that even after a few minutes you really start to notice the weight.

      2. I shouldn't have to set it up at all. Let me do it on the device. I'd rather just open the damn thing and start using it without it being mandatory that I give Apple information to set up an account, I should be able to do that at my leisure, and it shouldn't stop me from using it without pulling out a cable and connecting it to a computer. This doesn't bother me so much, but it wouldn't make my parents happy since their computers are really slow. If it could be done on device it would be much better in my opinion.

      3.Yes, file browser. You know, for local storage of attachments? For things people send you in an email. For using it as a pseudo flash drive (this moreso on the iPhone than iPad though.) I really like iFile because I can save and move attachments around as I see fit. Not like a windows 95 interface but a dedicated app. It's not that hard obviously. It would be immensly useful to me at work because I could transfer files to and from home since every online storage and email client/site is blocked there. (again more for the iPhone than iPad but no reason the two couldn't interchange.)

      4. It can get me alot of tablet if Apple didn't demand a massive profit on every piece of hardware. More memory isn't that expensive. I understand it's a business completely, and that's not my beef, but the margin of profit is so high on the iPad it's basically too expensive. 500 dollars for something with a measly 16 gigs. That's laughable with flash prices these days, especially in the quantities Apple purchases.

      5. I have around 1 gig free on any given day. 70% of that is music, I wouldn't use the iPad as a music player (nice assumption by the way). I would love to have 64gb as a starting capacity. The iPad is made for visual stimulus and gorgeous games. Yet I can only put about 4 movies out of my huge iTunes library on it because a whopping 500 bucks gets me 16 gigs and that with zero apps and photos on it. I have 2 gigs of photos on my phone right now. I'm not supposed to fill it up with visual media because I have an iPhone? Not hardly. The wireless N was my screwup, I take that back.


      16 gigs for 500 bucks is a joke. The iPad on the whole is a massively awesome device, but having so little storage for so much money is an immediate dealbreaker. I want to be able to put more than 5 or so movies/documentaries on an iPad and a shitload of apps on it. Might actually use it as a picture frame. For what the entry level cost is, that isn't an option. Unfortunately there are no viable competitors to the iPad so unless the price goes down, the storage goes up, or the girlfriend wants to buy me one in return for buying her one then I guess I'll do without. It's a great product overall, just way too expensive for the amount of storage the entry level has.
    1. iPhoneThereforeIAm's Avatar
      iPhoneThereforeIAm -
      Quote Originally Posted by KingBiznotch View Post
      Right, because Samsung is going to lie about sales and returns, in other words, give out false information which could sway or affect stock prices - because a couple of gadget websites reported on some random company called " ITG Investment Research"...

      So let's review this again - Samsung lies, which could get it investigated by Federal Trade Commission, along with opening the door to many law suits and investigations - to squash something that an independent firm reported?

      Regardless, since MMi cannot and did not confirm the article regarding the 16% return rate, it's not upto MMi to decide whether samsung is lying or ITG Investment Research is lying .... if you're going to report on one unconfirmed 'research' - then you ought to update your articles with the other side of the story.

      Take a lesson from SUCCESSFUL websites, such as Endgadget, for example:

      Samsung experiencing a 16 percent return rate on the Galaxy Tab? (updated: Samsung responds!)
      Someone forget their meds ?