Due in large part to the companies decision to reduce bloatware in its newest flagship and use a more premium feeling aluminum build instead of the usual plastic build, Samsung is expecting record shipments for the new Galaxy S6. Unfortunately, production constraints have made it so that the company will struggle to meet demand for the curved-edged variant of the smartphone.
Samsung Electronics Co Ltd (005930.KS) expects record shipments for its new Galaxy S6 smartphones and said it will struggle to meet demand for the curved-edged version due to production constraints, adding to hopes for a turnaround in mobile sales. The S6 models are widely expected to sell briskly following a string of positive reviews, boosting prospects for an earnings recovery in 2015. This week, the company estimated its January-March operating profit to be its highest in three quarters, which analysts said was partly because Samsung put its own chips in the new phones. Samsung expects the flat screen S6 to sell more than the higher-margin S6 edge – priced about $120 more in South Korea – but mobile chief J.K. Shin said at a media event on Thursday the firm won’t be able to keep up with demand for the latter model in the near term because the curved screens are harder to manufacture.
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