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Samsung slump deepens as report claims Galaxy S5 sales way below expectations

Samsung’s flagship Galaxy S5 has reportedly missed sales targets by a whopping 40 per cent this year, according to a Wall Street Journal report.

The report claims the firm has loads of stock “piling up in warehouses,” while in China the handset has sold only half as many units as the popular Galaxy S4.

The WSJ’s anonymous sources claim the company is scrambling to shift the excess inventory as it prepares to unleash the next generation. As a result of the drop-off, the positions of senior officials, including mobile boss J.K. Shin, could be under threat following the drop off in numbers.

Samsung relies heavily on its dominant mobile division in order to prop up less profitable sectors of the company.

However, the firm recently announced a 60 per cent fall in profits at the end of the last quarter, citing falling sales of top devices and shrinking profit margins on lower-end handsets.

Last week the company vowed it was cutting down on the number of handsets it produces in order to streamline its operation and compete with the low-cost Chinese manufacturer. That’s a tactic rival Android manufacturers like HTC, Motorola and LG have used in recent years.

Samsung’s woes are, of course, relative. It is still by far the best selling OEM in the world, but due to its rapid rise in the last few years, the scope for continued growth has become less and less. Expectations have become so high, that its difficult for Samsung to continue to set the bar higher.

Will this malaise cost J.K. Shin his job or is this report a sign of political jousting among Samsung’s three CEOs?

Read more: Galaxy S6: Release date, rumours, news and specs and price

Via: Android Police