Samsung‘s latest sales strategy has significantly boosted Galaxy S7‘s sales. Samsung made its latest flagship smartphone duo, the Galaxy S7 and S7 Edge a surprise hit with some cool and nice features. The company accomplished this by releasing the devices earlier than expected and pricing the smartphones cheaper. Sales of the latest devices are estimated to reach 9 million units, during their first month in the market.
The estimate is triple of the Galaxy S6 smartphone sales, in the same time frame, last year. As we earlier reported, some 10 million units of the Galaxy S7 have been shipped in March alone. Analysts have been prompted to raise their profit and revenue projections as Samsung reported its preliminary first-quarter earnings. Even though the Galaxy S7 Edge is 8% cheaper than last year’s version.
The company has avoided the standard practice of raising the prices of each new device. This practice is readily used by Apple Inc. The lack of an iPhone 7 and the decreased price of the Galaxy S6 had energized the device’s sales. Although, Samsung’s chip and display business might suffer from the cheap pricing.
“With the high-end smartphone market largely stagnated, the issue is no longer about what ‘Wow’ features the new phone has,rather, it’s about who can bring out the phone quicker.” said Claire Kim, a Seoul-based analyst at Daishin Securities Co.
The Galaxy S7 duo was released in February 2016 and is available since March 11. That is a while month earlier than the S6 models sale date last year, which was released in April. The Galaxy S7 has a 5.1-inch display while the S7 Edge has a 5.5-inch display. The new devices include waterproofing, a memory card slot, and longer battery life.
Even with all the new features and upgrades, the Galaxy S7 Edge is priced lower than the S6 Edge. Initially, analysts had predicted that the Galaxy S7 duo will score 7 million sales but recently, analysts have raised their projections by an average of 30 percent. The Galaxy S7 duo is also helping the company gain more customers in China, where Apple was dominant for quite some time. The duo has taken back customers from domestic manufacturers like Xiaomi, Huawei and Lenovo as well.
“Galaxy S7 series should be able to bump up the market share a bit in March as it is being received fairly positively across the world and China,” said Neil Shah, research director at Counterpoint Technology Market Research Ltd.