According to a new report by analyst Jeff Johnson of the boutique firm Arthur Wood Research, preorders for Samsung’s Galaxy S9 smartphone are down by 50% compared to the Samsung Galaxy S8. The S8 was released last year at the same time. The South Korean multination conglomerate introduced the S9 Mobile World Congress in Barcelona last week.
According to Johnson, smartphone consumers are somewhat ignoring the innovative features owing mainly to the fact that they are upgrading at a very slow pace. For companies such as Samsung Electronics, this could come as a scary spectre as they primarily depend on the sale of cell phones and cell phone components to up their revenue.
According to Above Avalon analyst Neil Cybart, Samsung sells phones to carriers and not consumers. Perhaps, Johnson’s report probably outlines carriers’ unwillingness to store S9 inventory in the face of relaxing reports of decreasing phone demand during the first quarter of 2018.
According to Johnson, sales of smartphone have begun to reduce at an accelerating and alarming rate. The same phenomenon could probably be attributed to the unsatisfying iPhone X sales post an initial increase in purchasing immediately after the phone was launched. Arguably, as compared to Samsung, Apple is more affected by a softening smartphone market.
This could come as great news to consumers. According to Johnson, in order to move inventory, wireless carriers may introduce “more aggressive promotions.”