Samsung’s Galaxy S6 and S6 edge have the praise of many tech analysts and journalists, and provide the premium look and feel that many have yearned for from the Korean manufacturer. Sales are high, and the S6 edge is in high demand (a great contrast from the Note Edge released last Fall). At the same time, however, it seems that the rumor mill continues to churn out decline for Samsung.
The latest rumor says that Samsung is cutting its Galaxy S6 production by 16%, a sign that suggests to some that Samsung’s having sales trouble. While we report on this and insist that it is just a rumor, the production cut doesn’t necessarily indicate any financial trouble on the horizon for Samsung. With financial woes due to the decline of the Won (Korean currency), as well as less-than-expected sales for Samsung in 2014, the company could very well slow down its production so as to not manufacture more smartphones than it sells.
Samsung’s goal this year is to use its semiconductor business, along with the sale of its SUHD TVs (running Tizen), the Tizen-powered Z1, as well as its Android smartphones (Galaxy S6, S6 edge, Note 4) and tablets (Tab S 10.5-inch and 8.4-inch models, NotePro 12.2, etc.), and its multiple budget-friendly models is to sell as many as possible (and lose as little as possible). In light of the company’s commitment to fiscal excellence this year, does it not make sense to scale down production so as to sell more phones and be on the “plus” side – as opposed to making more smartphones than it sells and ending up on the “minus” side with financial loss? Companies don’t make it to the top if they shell out more than they make.
Additionally, Samsung is now readying the Galaxy S6 Active for its public release, a smartphone that now has the interest of the tech world (considering that it is the only water and dust-resistant smartphone Samsung will release this year, as opposed to the S5 and S5 Active in 2014). With the long-rumored microSD card slot and 3,500mAh battery of the device, it stands to reason that Samsung would pump more resources into these phones. In other words, the 16% reduction could be made up for with S6 Active production.
Samsung’s success makes this rumor one to be taken with a grain of salt (and can be interpreted in the company’s favor even if it bears out), but the latest HTC rumor might be met with more acceptance. The same source citing Samsung’s production decline says that HTC has reduced production of its One M9 by 30%, with the company’s shares declining 4.85% and reaching the lowest level in 12 years yesterday. We don’t know what HTC has in the works for the rest of the year, but if the One M9 is the company’s flagship, the Taiwanese manufacturer’s worse-than-Galaxy S3 rating on the One M9's 20MP camera by photography expert DxOMark puts HTC off to a terrible start.
