Samsung’s upcoming flagship, the Galaxy S7, is scheduled for a launch in the beginning of the next year. And to pep up that launch and make these devices immediately available for buying, the company is reportedly planning the production of a staggering 5 million such phones.
Galaxy S7 is supposed to come in two variants; a 5.2-inch flat-screen version called Galaxy S7, and a curved screen version called the ‘Galaxy S7 Edge which will sport a 5.5-inch screen. There are 3.3 million of flat screen phones and 1.6 million curved screen Edge phones being planned for the initial production.
It is noteworthy that the flagship phones of Samsung, the Galaxy series and the Note series are the main competitors of iPhones in the premium phone segment. And iPhones, especially the large screen iPhone 6S and iPhone 6S plus have been rapidly eating the share of large screen Samsung premium flagship phones.
To better compete with Apple, Samsung recently played the strategy of an early launch in August this year with its Note series. It was launched in August this year — before the usual September thing — to get a head start over the iPhone launch in September.
And that showed immediate results. That early launch contributed to the better than expected sales numbers for Samsung in the third quarter as sales of new Note 5 phones minimised the impact of lower sales of Galaxy S6 and S6 Edge launched earlier this year.
According to the data recently leaked by China Mobile, Samsung may be planning the same strategy for the launch of Galaxy S7 phones.
Galaxy series have traditionally been announced in the month of February before the annual Mobile World Congress, and usually go on sale in the month of April. Naturally, the response in the revenues is not seen before the third quarter. And releasing the phone early may have a positive impact on the performance of the company sales.
Moreover, the better response to the sales strategy of Note 5 this year may further lead Samsung to go ahead with an early launch of Samsung S7 phones. However, going ahead with an early launch strategy has reduced the life cycle of its flagship phones to 10 months instead of the usual 12-13 months.
Due to the Note 5 early launch, the life cycle of its predecessor Note 4 was also reduced to 10 months and a similar thing may happen to the Galaxy S6 series if S7 is launched early.