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Samsung's 2 Million Galaxy Tabs Shipped May Not Have Wound Up in Hands of Consumers

By CIOinsight  |  Posted 02-01-2011 Print
Samsung shipped 2 million Galaxy Tab tablets as alternatives to Apple's iPad, but not all of them went to consumers. Moreover, consumers are returning the devices.

Samsung's Galaxy Tab isn't selling quite as well as the company and media have initially portrayed, a company official acknowledged.

Moreover, there is some evidence that the 7-inch tablets based on Google's Android operating system are making a round trip from retailers to consumers and back.

Lee Young-hee said that the 2 million Tabs the company claimed to have shipped since last September weren't actual sales to consumers but shipments to retailers and wireless companies such as Verizon Wireless, AT&T and others who offer the device.

The figure reflected "sell-in" numbers, Young-hee said during Samsung's quarterly earnings call Jan. 28. She declined to quote the "sell-out" numbers, or sales to consumers, but described them as "quite smooth."

The Wall Street Journal's Digits blog captured Young-hee's comments in a transcript:

As you heard, our sell-in was quite aggressive and this first quarterly result was quite, you know, fourth-quarter unit [figure] was around two million. Then, in terms of sell-out, we also believe it was quite smooth. We believe, as the introduction of new device, it was required to have consumers invest in the device. So therefore, even though sell-out wasn't as fast as we expected, we still believe sell-out was quite OK."

For more, read the eWeek article: Samsung Galaxy Tab Shipped 2M Units but Not to Consumers .


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