Samsung Electronics is experiencing significant demand surges for its new smartphone, the Galaxy S6 Edge and as a result, production for the curved smartphone screens has been started at a third location. Of course, the tech giant’s newest flagship smartphone is a thing of beauty and such demand had been expected.
Samsung Electronics foresaw record sales for its newest creation and this third production line, dubbed A3, should enable the tech giant to doubly its monthly output of approximately 2 million screens.
The Galaxy S6 Edge features a flexible screen which stretches down on both sides of the smartphone. Shin Jong Kyun, Samsung CEO, had already foreseen possible difficulties in matching the high demand for the S6 Edge and the company’s screen production capabilities. There are currently three working production lines which make OLED displays (this technology allows sharper images to be displayed at lower power necessities).
According to unidentified company executives, Samsung hopes to sell over 70 million units of its new flagship product, but its longstanding rivalry with Apple may get in the way of such dreams. In fact, Samsung has now dropped into a tie with Apple for the position of biggest smartphone maker. As a result of its fourth quarter drop, Samsung witnessed a massive 10 percentage point global market share plunge.
Despite putting everything into its new Galaxy smartphones, Samsung may be losing the long-term battle against Apple and its impeccable premium branding. For one, it seems that Samsung’s modest prices for the S6 Edge may be working against the tech giant. A Galaxy S6 Edge has a $290.45 production cost. This price exceeds that of any other Galaxy S6 (and even iPhone) model.
In the US, without any carrier subsidy, the S6 Edge (its 64 GB version) sells for a price of $799.99, well under the retail price of the iPhone 6 Plus ($849.99).
Research conducted by Reuters and HIS Technology shows that for every 100 S6 Edge models produced, Apple can produce 121 64-GB iPhone 6Plus models. In fact, since 2011, Samsung’s devices have repeatedly outdone Apple in production costs despite being sold at similar prices of corresponding iPhone devices.
Why is such a massive price gap possible, you’d wonder? Apple’s operating systems as well as its software have managed to rally a significantly higher premium among its users. In order to compete, Samsung would have to provide massive hardware improvements. Apple’s OS, services and software are such massive differentiators and apart from this clear advantage, Apple also has other things working in its favor.
For one, Samsung’s S6 Edge screen is not covered by warranty. And while you may not have been planning to include a mostly insurance plan in next month’s expenses, owning a Galaxy S6 Edge may dissuade you from your original plan.Korea Times reported the lack of warranty and an official confirmation soon followed. It seems that, depending on the type of damage, breaking the screen may result in £170-worth repairs.
“[The] part itself can’t be bought even from off-brand suppliers for anything less than $170,” authorized Samsung repairers state.
Image Source: Phone Arena
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