Samsung To Increase Production Of The Galaxy S8
It’s pretty safe to say that 2016 was not a good year for Samsung. The fiasco surrounding the exploding Galaxy Note 7 devices damaged the company’s reputation and sent their stock into a downward spiral. That being said, 2017 is shaping up to be a strong year for the Korean-based company with the Galaxy S8 and S8+ launching to positive buzz and strong pre-sales.
A report by South Korea’s The Investor says that sales of the more expensive S8+ have been stronger than expected motivating Samsung to increase production of the popular smartphone. The actual profit margins for the S8 and S8+ aren’t known outside of Samsung itself, but as a general rule, the company tends to get a higher return on investment on its more expensive devices. With that in mind, the better than expected sales of the S8+ is good news for the company.
Originally, the company planned for 60/40 sales split where 60 percent of the S8 sales would come from the smaller less expensive S8, and 40 percent would come from S8+. However, The Investor reports that pre-sale numbers of the S8+ have been strong enough to motivate Samsung to shift their production plans a bit. The report says that Samsung’s new production ratio will be 55/45 in favor of the S8.
The report also said that Samsung will continue to adjust, and likely increase, the production ratio before the S8 phones go on sale later this month. The increased production of the S8+ will also affect the company’s supply chains since the two phones do utilize a few different components.
The S8+ features a larger battery, screen, and casing than the smaller S8, but Samsung has likely already factored those components into the increased price of the S8+ which will be $100 more expensive than the smaller phone.
Both versions of the phone will launch on April 21st.
Eric is an avid tech junkie, gamer, and comic fan. When he's not working on his PC, you'll find him at your local comic book shop.