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Samsung Trying To Step Up Production To Meet Strong Galaxy Note 7 Demand

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Samsung’s latest phablet Galaxy Note 7 has been flying off the shelves. The Korean company had already pushed back the release of Note 7 in a few countries due to better-than-expected demand. Samsung told Reuters Wednesday that pre-order results for the Galaxy Note 7 have “exceeded our estimates,” prompting the company to adjust its release in some markets.

Samsung risks missing out on potential sales

Strong initial sales have caused supply constraints worldwide. The electronics giant said it was working to meet consumers’ demand as early as possible. Though solid demand could help Samsung deliver strong quarterly results, investors fear that supply shortage may cause Samsung to miss out on potential sales. Apple is said to launch its iPhone 7 and 7 Plus on September 7, which could attract customers away from Samsung.

Sources told Reuters that the supply shortage was not related to the production of curved displays. Samsung said it was trying to step up production at facilities where the Note devices are made. Analysts don’t see it as a major problem for Samsung. Nomura analyst CW Chung said the company could quickly ramp up production as it manufactures key components like displays and processors in-house.

Samsung may sell 15 million units of Galaxy Note 7 this year

Nomura expects Samsung to sell up to 15 million units of the Galaxy Note 7 this year. By comparison, the company had sold 9 million units of Galaxy Note 5 last year. IBK Asset Management said Samsung might face a temporary supply shortage, but it has “almost never had prolonged production misses.” The Note 7 hit the store shelves in many countries including the United States on August 19.

Experts have hailed the Galaxy Note 7 as one of the best smartphones on the market. DisplayMate said it has the world’s best display ever. Recent leaks suggest that Samsung may soon launch a Batman-themed Galaxy Note 7 Injustice Edition with 6GB RAM and 128GB of built-in storage. It’s still unclear whether the Injustice Edition will be available only in China or will be sold worldwide.

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