Galaxy S8: Only 5 Million Units To Hit Shelves Initially, Is Samsung Digging Its Own Grave?

Samsung is expected to launch its Galaxy S8 smartphone either at the MWC 2017 in February or in March, with the smartphone anticipated to hit the shelves in mid-April.

As Samsung gears up for the impending debut of its flagship smartphone that is poised to become the blue-eyed boy of consumers, reports are surfacing that initially, only 5 million units of the handset will be available.

Samsung is reportedly treading cautiously after the Galaxy Note 7 debacle. According to reliable industry sources of online publication The Investor, Samsung is testing this strategy to test the market's response.

"There is a possibility of the S8 phones being showcased a month or two ahead of the actual release date," added the publication's anonymous source.

Moreover, the sources have let slip that Samsung is targeting "a shipment goal of 60 million this year for its upcoming Galaxy S8 smartphone, higher than that of its previous flagship models."

In light of this shipment goal, the 5 million units that will be made available for release seem paltry. Whether this strategy will backfire for Samsung remains to be seen as overwhelming demand for the Galaxy S8 and its inability to meet the same due to supply shortages could land the OEM in soup.

Is Samsung Digging Its Own Grave?

The fact is that Samsung is already under the scanner because of its Galaxy Note 7 recall. The company has assured Galaxy Note 7 buyers that it would offer the consumers the option to get the Galaxy S8 or Galaxy Note 8 in lieu of the defunct device.

With Samsung having only 5 million Galaxy S8 available for purchase in the initial period, Galaxy Note 7 buyers who have taken the company up on its offer would be waiting to snag the same at the earliest.

If a supply issue occurs and these consumers do not get the Galaxy S8 smartphone, then Samsung could be stirring up a hornet's nest by making already disappointed loyalists irate.

Samsung faced inventory issues with the Galaxy Note 7 and should take lesson from the same. Considering, the Galaxy S8 will be the top-end smartphone people have waited for a year — especially with no Galaxy Note smartphone in the middle — Samsung loyalists would be eagerly waiting to lay their hands on the Android device.

That the Galaxy S7 successor could possibly be the first smartphone to boast Bluetooth 5.0 and the latest Qualcomm Snapdragon 835 processor, would make it a prized purchase. The revamped design with no bezels and no home button would make the Galaxy S8 a desired smartphone. If Samsung brings the iris scanner support to the Galaxy S8 — a feature introduced in the Galaxy Note 7 — then consumers would gravitate toward the handset.

Samsung may have managed to show resilience despite the Galaxy Note 7 debacle by accounting for strong earnings in Q4 2016. The operating profit, which had declined to almost 29.6 percent or $4.36 billion in the Q3 2016, rose 76.9 percent in Q4 2016.

However, if the Galaxy S8 encounters any hiccups post launch — especially issues with supply — then the company could be eyeing possible losses.

Samsung, it seems, has a plan in place and will reportedly speed its Galaxy S8 production in March. The company will begin receiving many components of the handset from primary vendors in February itself. Its secondary vendors such as Hansol Technics, are anticipated to offer the parts in April.

Hopefully, the company will be able to meet the consumer demand for the Galaxy S8 smartphone and ship out the orders on time.

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