Article denying Forbes claim of s6 sales

[Laura Knotek]

lol everyone knows windows doesn't count...

Nexus 6 Assassin Edition. Android Central Moderator.

I've actually never seen anyone with a Samsung Windows Phone. I did see a lot of people with Samsung Windows Mobile devices back in the day before Android existed. Palm and BlackBerry were more common than Samsung though.

Sent from my rooted Nexus 7 (2013) using Tapatalk

 

[thoots]

Indeed. Check this out:

Samsung SCH-i730 (Verizon Wireless) review - CNET

 

[I Can Be Your Hero]

Maybe we should just wait for Samsung's official numbers.

In the meantime, does high or low GS6 sales means the device is any better/worse? Nope. The phone is great irrespective of how it sells. Sales are Samsung's (and their investor's) concerns.

 

[Zoostation]

Maybe we should just wait for Samsung's official numbers.

In the meantime, does high or low GS6 sales means the device is any better/worse? Nope. The phone is great irrespective of how it sells. Sales are Samsung's (and their investor's) concerns.

Most reviews were very positive, but that doesn't mean much since average user doesn't read them. I will say this from my own vzw experiences, that while on the whole, I see salespeople promoting iPhones more than anything else, it's a lot more balanced at corporate stores than at "authorized retailers." I walked into a couple non corporate stores shortly before purchasing my S6 and I didn't see or hear any salesperson present an android phone in a positive light. Could be just those two stores (same reseller) but I certainly didn't like the vibe I got and nonetheless bought from a corporate store.

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[Techno-guy]

Most reviews were very positive, but that doesn't mean much since average user doesn't read them. I will say this from my own vzw experiences, that while on the whole, I see salespeople promoting iPhones more than anything else, it's a lot more balanced at corporate stores than at "authorized retailers." I walked into a couple non corporate stores shortly before purchasing my S6 and I didn't see or hear any salesperson present an android phone in a positive light. Could be just those two stores (same reseller) but I certainly didn't like the vibe I got and nonetheless bought from a corporate store.

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My guess is that the iPhone is pushed harder because it has much higher margins for the retailer due to a higher sell-through price than your average Android phone (maybe as much as double) plus I'm pretty sure the number of returns/issues is far lower with Apple devices. Every time I'm at my phone retailer, I see a line of people needing Android support but very few Apple issues. I always marvel at that.

Obviously, the iPhone is a much less complicated device so much easier for the end user and there is also great support from Apple itself. So from a retailers perspective, the margin is just much higher for iPhones due to higher selling prices and much less post-sales support.

 

[berdinkerdickle]

My guess is that the iPhone is pushed harder because it has much higher margins for the retailer due to a higher sell-through price than your average Android phone (maybe as much as double) plus I'm pretty sure the number of returns/issues is far lower with Apple devices. Every time I'm at my phone retailer, I see a line of people needing Android support but very few Apple issues. I always marvel at that.

Obviously, the iPhone is a much less complicated device so much easier for the end user and there is also great support from Apple itself. So from a retailers perspective, the margin is just much higher for iPhones due to higher selling prices and much less post-sales support.

That answers my question I made in the iOS vs Android thread.
I posted there how I'm reading of several replacement for faulty Android devices, but questioned if Apple has less replacement issues.

 

[berdinkerdickle]

However, I then posted the Galaxy Note line appears to be rock solid.

 

[msm0511]

Most reviews were very positive, but that doesn't mean much since average user doesn't read them. I will say this from my own vzw experiences, that while on the whole, I see salespeople promoting iPhones more than anything else, it's a lot more balanced at corporate stores than at "authorized retailers." I walked into a couple non corporate stores shortly before purchasing my S6 and I didn't see or hear any salesperson present an android phone in a positive light. Could be just those two stores (same reseller) but I certainly didn't like the vibe I got and nonetheless bought from a corporate store.

Posted via the Android Central App

At AT&T the salespeople definitely push Samsung the most. I even had 2 different employees tell me they do. Of course those are just 2 employees in 2 different cities, but every time I've been in an AT&T store, the first thing they try to do is push a Samsung device on me.

 

[Zoostation]

At AT&T the salespeople definitely push Samsung the most. I even had 2 different employees tell me they do. Of course those are just 2 employees in 2 different cities, but every time I've been in an AT&T store, the first thing they try to do is push a Samsung device on me.

Did some price checking today and AT&T is noticeably higher priced than VZW on S6/S6 Edge models, so maybe they are marking them up more and pushing a higher margin device. iPhones are priced identically at full retail amongst all of the big 4.

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[asanatheist]

My guess is that the iPhone is pushed harder because it has much higher margins for the retailer due to a higher sell-through price than your average Android phone (maybe as much as double) plus I'm pretty sure the number of returns/issues is far lower with Apple devices. Every time I'm at my phone retailer, I see a line of people needing Android support but very few Apple issues. I always marvel at that.

1. Apple products have lower margins than competitors. However they bring in a lot of people, retailers bank on the flow of people to buy the $50 plastic cases, and $30 cables to make their profit.
2. Not really, Apple phones (and devices) have many defects as well. They're average in the industry. It's kind of puzzling how considering they only one device model (with the exception of the iPhone 6 plus/6 per generation).

 

[Techno-guy]

1. Apple products have lower margins than competitors. However they bring in a lot of people, retailers bank on the flow of people to buy the $50 plastic cases, and $30 cables to make their profit.
2. Not really, Apple phones (and devices) have many defects as well. They're average in the industry. It's kind of puzzling how considering they only one device model (with the exception of the iPhone 6 plus/6 per generation).

Not sure you are correct. The return rate for Android phones has been called Android's "Dirty Little Secret" by a number of publications. Android return rates are as high as 30-40% whereas iPhone returns are in the single digits. That helps drive retailer margins up significantly for Apple products since they have far less post-sales support (plus customers generally go to Apple first relieving additional burden from retailers). Margins are not just the gross margin on the product but how much it costs to sell it.

 

[warpdrive]

Not sure you are correct. The return rate for Android phones has been called Android's "Dirty Little Secret" by a number of publications. Android return rates are as high as 30-40% whereas iPhone returns are in the single digits. That helps drive retailer margins up significantly for Apple products since they have far less post-sales support (plus customers generally go to Apple first relieving additional burden from retailers). Margins are not just the gross margin on the product but how much it costs to sell it.

Can I have a source for this information please?

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[Techno-guy]

Can I have a source for this information please?

Posted via the Android Central App

I remember reading it in a book about 18 months ago (can't recall the name off the top of my head) but here is an older report from 2011 saying the same thing:

Android’s Dirty Secret: Shipping Numbers Are Strong But Returns Are 30-40% | TechCrunch

 

[warpdrive]

I remember reading it in a book about 18 months ago (can't recall the name off the top of my head) but here is an older report from 2011 saying the same thing:

Android’s Dirty Secret: Shipping Numbers Are Strong But Returns Are 30-40% | TechCrunch

Well let's take a look at that shall we...

1)The article is from 2011.

2) This is the name of the source from the article.... "However, on the ground, many return rates are approaching 40% said a person familiar with handset sales for multiple manufacturers." heck, no name? Let's just call him Johnny Ives while we're at it.

3) business insider reported on this article and later did an update. This is what they found.... "Yesterday a report, citing a single source, claimed that people were returning Android phones to the store at a staggering 30-40% rate. If so that would mean that Android is much smaller than we thought--but we also doubted the report because the number was so high.

Now Pudong Daily, which is written by a former consumer electronics executive, writes that the number just isn't possible:

From experience, retailers start complaining and asking for compensations when return rate gets higher than 5-7%.

Even worse, not a single phone vendor would launch any Android-based phone if it would be rejected by so many customers. With such a return rate, the HTC and Samsung of this world would loose [sic] money on all of their Android models.

That's what we thought. "

www.businessinsider.com/android-returns-cant-be-30-40-2011-7

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[asanatheist]

Not sure you are correct. The return rate for Android phones has been called Android's "Dirty Little Secret" by a number of publications. Android return rates are as high as 30-40% whereas iPhone returns are in the single digits. That helps drive retailer margins up significantly for Apple products since they have far less post-sales support (plus customers generally go to Apple first relieving additional burden from retailers). Margins are not just the gross margin on the product but how much it costs to sell it.

Where I am at we were going to be authorized apple center/apple "retailer". The margins were too low, period. You cannot make a business making $10-$15~ per iPad sometimes less. I am not sure how anyone can work with those margins. (PS before you say anything alot of tech brick/mortar stores are going out of business slowly but surely in the US).
Lastly there are not that many Apple stores in the country to service every location. Trust me many people still go back to the carrier or retailer.
Return rates are not defective rates, you specified people having issues (defects) not returning devices.

Once again defective rates are about the same for Apple as other mfger's sometimes worse sometimes better. If often varies model to model.

 

[Phillip Pugh]

Since when is 10 million sold in a month a bad thing you guys are making way to much of this . Lg said they hope to sale 10 million g4 in a year . Don't here a lot of complaints about lg sales folks just love the glass half empty with samsung's products lot of hating going on

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[Phillip Pugh]

As soon as the Note 4 and Note Edge came out, I started seeing them at work and roundabout. Also with the S5.
But I have yet to see an S6.
Amazon shows the sales as being way down. And both Verizon and Amazon show most review complaints with horrible battery life.
So, it's not a big surprise the sales are down.

The gs6 has been out little over a month it'll take a least another month are so before you start seeing them more . I can say the same thing for the iPhone 6 didn't start see then until 3 months later saw a lot of iphone 5 same with a lot of 4s 5S . It tale time before the phone get the chance to circulator in the market

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[anon(41073)]

I am passing on the Galaxy S6. I will hold on to my S4 and get an iPhone 6.

 

[dnangel_95]

Since when is 10 million sold in a month a bad thing you guys are making way to much of this . Lg said they hope to sale 10 million g4 in a year . Don't here a lot of complaints about lg sales folks just love the glass half empty with samsung's products lot of hating going on

Thing is.... Samsung ≠ LG.
It's Samsung > LG

 

[Techno-guy]

Well let's take a look at that shall we...

1)The article is from 2011.

2) This is the name of the source from the article.... "However, on the ground, many return rates are approaching 40% said a person familiar with handset sales for multiple manufacturers." heck, no name? Let's just call him Johnny Ives while we're at it.

3) business insider reported on this article and later did an update. This is what they found.... "Yesterday a report, citing a single source, claimed that people were returning Android phones to the store at a staggering 30-40% rate. If so that would mean that Android is much smaller than we thought--but we also doubted the report because the number was so high.

Now Pudong Daily, which is written by a former consumer electronics executive, writes that the number just isn't possible:

From experience, retailers start complaining and asking for compensations when return rate gets higher than 5-7%.

Even worse, not a single phone vendor would launch any Android-based phone if it would be rejected by so many customers. With such a return rate, the HTC and Samsung of this world would loose [sic] money on all of their Android models.

That's what we thought. "

Android Returns Can't Be 30-40% - Business Insider

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I agree entirely that the number is really high and would not be a sustainable business model. That return rate really is out of the park. But that wasn't my source for the information. I shared that my source for the information is that I read it in a book roughly about Android roughly 18 months ago (but the return number certainly wasn't as high as this 2011 article, but off of memory I do recall Android returns being many factors higher than iPhone returns).

Regardless of any of this, if you think that retailer margins are higher for Android over iPhone, that's ok. I'd love to see actual, current data. I just tend to doubt it considering how hard every single retailer pushes iPhone sales. Even if the iPhone gross margin is lower, the sales price is much higher on average than Android phones (my guess is at least double) and the retailer post sales support is considerably less so the actual net profit to the retailer (in actual dollars, not %) must be far higher for iPhone empirically since they push them so hard.