Samsung Galaxy S7 has taken the smartphone market by storm. It was recently crowned the Best Smartphone Ever By Consumer Report. There have been several articles, unboxings, reviews, and tests detailing all there is to know about the Galaxy S7. But one important piece of information was still unknown and that is, the sales. Samsung‘s latest flagship device is on the path to success. The Korean market watchers have reported that the sales of the Galaxy S7 were stronger than expected.
This clearly shows that Samsung’s smartphone business is rapidly recovering from the recent sales decline. It has been reported that the company has shipped nearly 10 million Samsung Galaxy S7 smartphones. It is still unknown if this includes the S7 Edge’s sales as well. The Galaxy S7 has surpassed the initial sales estimate of 7 million units by a big margin. This has prompted the analysts to raise their S7 sales predictions for 2016.
Samsung’s shares rose a whole of 2.4% last Wednesday to an 18- week high, Stock is also up by more than a fifth since the middle of January following a 22% slide over the past three months.
Initially the flagship device’s market performance perspectives were low. Sales analysts had lowered their expectation after signs of decrease in demand , of premium smartphones. Samsung had projected that the S7 will outsell previous smartphones. Investors were initially sceptic towards this projection. Samsung had based this belief on the stronger than anticipated pre-orders of the Galaxy S7.
Along with good premium level sales, Samsung increased efforts to secure shares in the mid and low levels also. Taking advantage of Apple not having any new products currently in the market, Galaxy S7 was also introduced a month earlier than last year’s flagship smartphone; the Galaxy S6. Both moves were categorized as sound marketing strategies by analysts.
The Galaxy S7’s success is also contributed to the incremental changes applied to the Galaxy S6’s success formula. This helped to improve earnings because the similarities in the two smartphones helped reduce development costs. This also allowed Samsung to set the S7’s price 8.3% cheaper in the Korean market.
“From the investors’ perspective, there’s nothing wrong with making money without innovation,” said Lee Jin-woo at KTB Asset Management.
Samsung has yet to comment on the sales or shipment. Currently the company has declined to comment saying the earning have not been finalized yet.