It recently came out that according to the tech giant Samsung, the stronger demand for the new Galaxy Note 7 is causing supply constraints globally and suggesting strong initial sales for the premium device.
Samsung’s statement to Reuters says, “As pre-order results for the Galaxy Note 7 have far exceeded our estimates, its release date in some markets has been adjusted”.
The new premium device is being abetted by the world’s top smartphone maker which stated that the new premium device will help to maintain business’ sales and earnings momentum in the second half despite strong rivalry of Apple, which is prepared to launch new devices in the next quarter of this year.
While solid mobile earnings for the company, could enter another quarter because of the strong sales business of smartphone. Similarly, Samsung is also at a disadvantage on persistent shortages of revenue that it’s missing out. In addition, according to the analysts and investors, last year, the company has also bored a cost due to the inability of supplying enough of the curved-screen Galaxy S6 edge phone.
However, KTB Asset Management fund manager Lee Jin-woo said that whatever the company gets out of the Note 7 will be a bonus factor, since what the market has been betting on for the second half is a pickup in earnings from the display and semiconductor businesses.
Considering Samsung’s track record, the supply problem will be resolved quickly, Lee added.