Samsung Says Galaxy Note 7 Demand Putting Pressure On Supply

Samsung appears to have underestimated the potential performance of its new flagship handset. The company said today that increasing demand for the new flagship is putting pressure on supply. The statement itself suggests that initial sales of the handset that was launched on August 19th in several markets across the globe including the United States are strong. Samsung is now having to manage demand and supply and this has resulted in the Galaxy Note 7 release being delayed in a couple of markets.

“As pre-order results for the Galaxy Note 7 have far exceeded our estimates, its release date in some markets has been adjusted,” Samsung said in a statement provided to Reuters. The company didn’t comment on the markets where the release is going to be delayed.

Previous reports have suggested that the Galaxy Note 7 release is being delayed in markets like Malaysia, Russia, and Ukraine owing to increased demand elsewhere. Some additional markets across Europe might also see a delayed launch.

Samsung did tell the scribe that it’s working hard to boost production at the facilities where the Note handsets are manufactured and that it’s looking to meet increased demand “as early as possible.”

The company went through something similar last year when the Galaxy S6 edge was released. It faced difficulties in producing curved displays for the handset which caused it to miss out on a significant number of sales. Investors are worried that if the demand-supply issues are not resolved Samsung might not be able to take advantage of the Galaxy Note 7’s full potential.

Adnan Farooqui
Categories: Cellphones
Tags: Galaxy Note 7, Samsung