Comments on: Samsung – No bottom with this line

By: windsorr

windsorr — Fri, 21 Nov 2014 17:11:11 +0000

Difficult to tell…I suspect they actually reduced inventory during the quarter. However, inventories are managed in terms of days of sale and so falling sales and cutting inventory is pretty normal in this situation. I wouuld suspect that invnetories are down but robably flat in terms of days of sale.

By: Logan

Logan — Thu, 20 Nov 2014 10:47:02 +0000

I completely agree. In the US especially their shipment numbers & marketshare is driven primarily by commission bonuses to carrier sales staff.

I’m assuming any smart company would have to pull back on these commission bonuses in the US as they need to focus on the billions of people in the developing world.

By: Tim Nash

Tim Nash — Wed, 19 Nov 2014 12:35:34 +0000

Another question is how much channel fill was there last quarter before the figures were announced? That Samsung had to move the Note launch into September, from this quarter, suggests the channel was near or at capacity with other models.

Marketing, including commissions to carrier sales staffs, drove Samsung to current sales levels so there is a big risk if they cut back there. Like you, I feel the worst is yet to come.