Sales of Samsung Galaxy Tab Not as Fast as Expected

Samsung Galaxy Tabs
Turns out that Samsung’s Galaxy Tab (aka the company’s answer to Apple’s iPad) may not be selling quite as well as the company has been letting on.

According to The Wall Street Journal, the company claimed late last year that it had sold 1 million and that sales were going “faster than expected.” In early January, Samsung backed up that claim by announcing sales of 2 million.

But during a recent quarterly earnings call, a Samsung executive revealed those figures don’t represent actual sales to consumers. Apparently they are simply the number of Galaxy Tab devices that Samsung has shipped to wireless companies and retailers around the world since product’s formal introduction in late September.

When pressed by an analyst at an investment bank, the Samsung executive, Lee Young-hee, said that sales to consumers were “quite smooth,” though she didn’t give a specific number. In her response she used the terms “sell-in” to reflect Samsung’s sales to distributors and “sell-out” to reflect the distributors’ sales to consumers.

Here is Ms. Lee’s response to the analyst:

“Well, your question was on sell-in and sell-out. As you heard, our sell-in was quite aggressive and this first quarterly result was quite, you know, fourth-quarter unit [figure] was around two million. Then, in terms of sell-out, we also believe it was quite smooth. We believe, as the introduction of new device, it was required to have consumers invest in the device. So therefore, even though sell-out wasn’t as fast as we expected, we still believe sell-out was quite OK.”

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