Economy, Sci & Tech

Samsung Galaxy S6 Edge Shortages Expected

Samsung Galaxy S6 Edge Shortages Expected
Samsung Galaxy S6 Edge Shortages Expected

Demand for Samsung's new Galaxy S6 Edge will outstrip supply due to low production numbers of the phones display the company's top executive, JK Shin, announced on Friday, Reuters reported.

Shin told assembled reporters that production issues would mean that users wanting the uniquely designed device would most likely have to wait if they want to lay their hands on one.

The S6 models are widely expected to sell briskly following a string of positive reviews, boosting prospects for an earnings recovery in 2015. This week, the company estimated its January-March operating profit to be its highest in three quarters, which analysts said was partly because Samsung put its homemade chips into the new phones.

Samsung expects the flat screen S6 to sell more than the higher-margin S6 edge - priced about $120 more in South Korea - but mobile the chief said at a media event on Thursday the firm won't be able to keep up with demand for the latter model in the near term because the curved screens are harder to manufacture.

"Some carriers are switching existing orders to get more of the S6 edge, and it looks like demand for the model will exceed supply throughout this year," said HMC Investment analyst Greg Roh. "That means average selling price will fall at a slower rate, which will have a positive impact on Samsung overall."

Samsung has not disclosed its shipment record for the handset. Analysts regard the Galaxy S3 as its best-selling model overall, though they estimate the Galaxy S4 to have done better in its initial year, when a model is most profitable.

Samsung's Shin also said the South Korean electronics maker is preparing a variety of wearable devices, including a new version of its Gear smartwatch, but did not give specifics.

The phone was officially released on Friday in 20 countries around the world. The official release for the phone in Iran will be on April 21, at the beginning of the next Iranian month. The local headquarters has announced that local consumers can pre-purchase the phone in their own brand stores and through authorized retailers online and through third party distributors.  Samsung is one of the only companies in Iran who offers direct guarantees and after-sales service, with its company holding the largest market share in smartphone sales over the past two years.