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Samsung Galaxy S3 to retire, Galaxy S4 production scaled back

Samsung is planning to retire the Samsung Galaxy S3 earlier than planned, and will be scaling back production of the Samsung Galaxy S4.

According to industry sources, the Wireless Business Division of Samsung Electronics will reduce the monthly production of Galaxy S4 handsets by as much as 15 per cent, while the Samsung Galaxy S3 will be removed from sale.

Speaking to the Korean website ET News, the sources say the July order for Samsung Galaxy S4 parts is only enough to make 6.5 million S4 handsets. This is only around half the size of the order placed in May.

Samsung has reportedly noted that the company isn’t selling enough Galaxy S4 handsets to justify such large orders and has been accumulating parts in its inventory.

A recent report from JP Morgan indicating their fears over slowing Galaxy S4 sales caused the financial services firm to cut Samsung share price estimates by 9.5 per cent and the company’s 2013 earnings prediction by 9 per cent. These estimates caused Samsung prices to tumble.

Many claim that the recently unveiled Samsung Galaxy S4 iterations – the Samsung Galaxy S4 Zoom, Samsung Galaxy S4 Mini and Samsung Galaxy S4 Active – are diluting the electronics manufacturer’s flagship device.

The sources also revealed that several smartphone models will be retired to streamline its production operations. This will include the Samsung Galaxy S3 in a bid to boost poor sales performance.

Samsung will pin its hopes on the Galaxy S4 and its various editions and new devices like the highly-rumoured Samsung Galaxy Note 3.

The company’s flagship smartphone has already achieved great consumer success. The Samsung Galaxy S4 reached the 10 million unit sales milestone less than one month after the flagship device launched.

At the Samsung Galaxy and ATIV event this week, Samsung also confirmed five new Samsung Galaxy S4 colours to complement the black and white iterations.

Next, read our Samsung Galaxy S4 tips and tricks.