Samsung’s Excess Inventory of Galaxy S6 Finally Moving Thanks to Best Buy and Verizon
Earlier, we expressed concern over the gap between the published estimates of the Samsung Galaxy S6 and the consumer response we are seeing in our data. Now, thanks to some very attractive promotions by Best Buy and Verizon, consumer demand is increasing, as demonstrated by the chart below (we kept the scale linear to emphasize just how far ahead Best Buy & Verizon jumped ahead in demand). However, demand is only growing at those retailers that are enticing consumers with gift cards, free upgrades, or other goodies like free wireless charging pads.
Based on our past experience in tracking product launches, this could mean that organic demand for Samsung’s latest handset is much lower than analyst from Citibank and elsewhere would have us believe. It would be one thing if we saw demand through the roof, and then Best Buy and Verizon were competing to be the best carrier/retailers for the new Galaxy S6, but these promotions came AFTER the launch date. This is the opposite of iPhone 6 and 6 Plus promotions, which Verizon used to dominate the market BEFORE the launch.
Promotions prior to launch ensure the flood of buying consumers come to your store. Promotions after launch (literally days after launch) indicate significant extra inventory needing to be cleared.
We stand by our assertion that the Galaxy S6 launch is not going as well as others believe. Our data does support that the S6 Edge is in higher demand than expected (by our count almost on par with the S6) and definitely better loved by new consumers than the more generic S6. It has only been two weeks since the launch, but those looking for Samsung to have an easy return to smartphone market leadership are likely to be sorely disappointed…
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