Samsung scales back Galaxy S4 production amid rumours of poor sales

Plans to discontinue the Galaxy S3

By Carly Page

KOREAN PHONE MAKER Samsung reportedly is planning to scale back production of its flagship Galaxy S4 smartphone by 10 to 15 percent.

According to the Korean news website ET News' industry sources, Samsung has slashed Galaxy S4 orders for July. The report claims that Samsung has ordered parts for 6.5 million Galaxy S4 handsets, about half of the size of the orders that the firm place in May.

This follows claims that the Galaxy S4 hasn't exactly been flying off shelves since its release earlier this year, with analyst JPMorgan claiming that sales are "20-30 percent lower" than the firm had previously expected. These comments caused Samsung's share price to dive six percent overnight and wiped around £7.2bn off of the value of the firm.

However, despite reports of slowing production of its flagship Android smartphone,Samsung CEO JK Shin has been quick to debunk the rumours. He said, "I can say sales of the Galaxy S4 smartphone are fine. It's been selling well."

"The report (by JPMorgan) was based on its own analysis. Probably, the bank may have corrected its previous bullish estimate about the [Galaxy] S4 sales."

The firm remained confident at its Galaxy and Ativ Premier event in London on Thursday, saying that it has received an overwhelming reaction to the Galaxy S4.

As well as reportedly scaling back production of the Galaxy S4, the firm reportedly plans to discontinue the Galaxy S3 sooner than previously planned. The Galaxy S3 will join a number of models that will be retired due to "poor sales performance", the report claimed.

Samsung was not immediately available for comment. 

Inquirer