Galaxy S6: Samsung Raises Production Target To Meet Potential Strong Demand

Galaxy S6: Samsung Raises Production Target To Meet Potential Strong Demand
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Samsung’s Galaxy S6 and S6 Edge impressed tech enthusiasts with their premium design, craftsmanship and performance when they debuted at the Mobile World Congress earlier this month. Wireless carriers were equally impressed, placing orders for as many as 20 million units. Strong market reception seems to have surprised even the Korean electronics company.

Samsung to produce 8M units of Galaxy S6 in April

Sources familiar with the matter told Korean newspaper the Electronic Times that Samsung has increased its production target for the Galaxy S6 and S6 Edge for April. Samsung had previously planned to produce 4 million units of the Galaxy S6 and one million Galaxy S6 Edge units (total 5 million units) in March. Though the company’s production target for March remains unchanged, it now plans to produce 8 million units in April, up from the previous target of 7 million.

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Now, the initial production in March and April will constitute of 9 million Galaxy S6 units and 4 million S6 Edge units. Wireless carriers have placed orders for 15 million S6 and 5 million S6 Edge units. Considering the higher price tag and potential niche appeal of the dual-edge variant S6 Edge, Samsung’s production is likely to lean heavily towards the standard S6 version.

Citigroup raises its Galaxy S6 shipment estimate

Samsung’s entirely redesigned smartphones are critical to the company’s plans to reverse its falling smartphone sales and profits. Citigroup analyst Henry H Kim is optimistic about the new phones. On Wednesday, Kim raised the price target for Samsung from 1.7 million won to 1.8 million won. The research firm has also revised its Galaxy S6 shipment estimates from 38 million units to 46 million units this year.

Citigroup said the success of the Galaxy S6 will also have a positive impact on Samsung’s mid- and low-end products. The firm expects Samsung’s first quarter profit to decline 1% due to “slow seasonality.” But its second-quarter profits are expected to jump 39% YoY as the new flagship devices will contribute to its earnings. The Galaxy S6 and S6 Edge will start selling in 20 countries on April 10.

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