Samsung’s flagship Galaxy S5 has been struggling to match the successes of its predecessor since it first went on sale back in February, and nine months on, things aren’t looking much better. Thanks to declining demand in many markets, the Galaxy S5 is missing sales projections by 40%.
During its first three months on sale, the Galaxy S5 sold 12 million units. That’s a pretty impressive figure for most smartphone manufacturers, but Samsung is used to a lot more; the Galaxy S4 sold around 20 million units during its first 68 days of availability.
Now sales of the Galaxy S5 are decreasing in many markets, The Wall Street Journal reports, with the U.S. the only major market where sales have actually increased. In China, demand for the Galaxy S5 has plummeted as much as 50%.
Samsung wasn’t prepared for this — it expected the Galaxy S5 to be bigger than any Galaxy S smartphone that came before it — and as a result, the handset has fallen well short of the company’s ambitious sales projections.
Samsung has been forced to spend yet more money on advertising in an effort to shift the Galaxy S5 units currently “piling up in warehouses,” say sources speaking to The Journal. The company is also said to be considered a “shake-up in management,” with mobile chief JK Shin possibly set to be replaced by his fellow co-CEO who currently heads up Samsung’s TV and appliances division.
Today’s news comes less than a week after Samsung vowed to release fewer smartphones in 2015 in an effort to cut costs and reverse falling profits. Next year’s handset lineup could be around 30% smaller than this year’s, sources claim, but it’s currently unclear whether flagship devices or more affordable offerings designed for emerging markets will get the chop.