Samsung has confirmed that there is a high demand for its new Galaxy Note 7, which is causing global supply constraints. In other words, the upcoming Galaxy Note 7 will be sold very well once it will get released. Samsung said that the pre-orders results for the Galaxy Note 7 have far exceeded its estimates.
The company is hoping that this new premium device will help Samsung maintain sales and earning momentum in the second half 2016, even if Apple is preparing to release its new devices in the coming months.
If the sales for the Galaxy Note 7 will go as Samsung is hoping, there are still some risks that the company will have take, because there will be some issues with the supply. According to analysts and investors, the inability to supply enough Galaxy S6 Edge devices last year cost the company lots of money.
Samsung said that it has tried to boost the production and aimed to meet the demand “as early as possible”, but right now, we’re not sure if they have enough Galaxy Note 7 devices and there are high chances that some people will have to wait for a few weeks to get their mobile devices, because of the low supply.
Lee Jin-woo, KTB Asset Management fund manager, said that “Whatever the company gets out of the Note 7 will be a bonus factor, since what the market has been betting on for the second half is a pickup in earnings from the display and semiconductor businesses”.
However, let’s not forget that Samsung’s track record shows clearly that it is able to solve the supply issue very quickly. Hopefully, the company will manage to fix this problem in order to sell as many Galaxy Note 7 devices as possible.
What are your thoughts about the upcoming Galaxy Note 7? Will you purchase it once it will hit the stores?
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