Samsung Electronics is a South Korean multinational corporation, which is the largest information technology company of the world by revenues. The company is also the largest maker of mobile phones and it attained this title with the help of its Galaxy unveiling. The company’s current flagship smartphones, Galaxy S III was the best-selling phone of the previous year. However, anticipation has been high for the next version of the Galaxy S phone. The company will be launching the Galaxy S IV on Thursday in New York. However, the success of the new device will depend on a supply backup plan.
This is due to the fact that the company would want to prevent the repetition of a costly snag that happened with its premium smartphone last year. It has been predicted by some analysts that in the first month after its launch, the sales of the new Galaxy S IV could be more than 10 million units. Therefore, it can be disastrous for the company if the delivery of the core components undergo any hiccups. This highlights that the risk is quite high. After the South Korean giant launched the S III last year, it had to suffer a loss of 2 million units because the handsets were unsatisfactorily designed due to a simple manufacturing snafu.
An analyst said that a supply bottleneck might still occur because the supply of components is low, but the company would ensure that its brief as Samsung is placing a greater bet on the S IV than it did on its predecessor. Therefore, any such disruptions in supply would be kept to a minimum. Moreover, it is possible that the company might have ended up overhyping its phone because it has pre-empted the launch with a very solid marketing blitz. According to analysts, if the consumers do not find the dazzling features that has become the trademark of Galaxy phones and incremental improvements will be disappointing.
The United States has been chosen by Samsung Electronics for launching their new flagship device there as the company wishes to regain its lead in that market. In the quarter ending in December, Apple Inc. managed to take that position away from the South Korean firm even though it had spent around $400 million there on advertisements. Especially for Samsung, the stakes are quite high because the annual profits of the company are derived from the product. Head of Samsung’s mobile business, J.K Shin, who is also a recently elected board member, will be attending the Galaxy launch at Radio City Hall.
Therefore, he will not attend his first shareholder meeting on Friday that will be launched in Seoul. Another analyst has said that the new phone should offer a lot of new things that not only beat its predecessors, but also the features offered by competitors. Otherwise, the company might fail to meet the expectation of consumers that are just going to get higher over time. However, Samsung did not elaborate on the steps they have taken to ensure that there are no hiccups in supply of the new device.