Samsung said to be going all-in on Galaxy S4 production, could hurt Apple

According to analyst Peter Misek of Jefferies & Company, Samsung has plans to produce 100 million Galaxy S4 handsets in anticipation of growing demand for the flagship Android brand. The scale of production is so large that it will require the reallocation of certain resources. The move could result in a downsizing of Samsung’s involvement in the production of future iPhone models as components and manufacturing power are redirected to the GS4.

This could hurt Apple in the short term as it gears up to the rumored release of not one but two new iPhone models later this year. The two companies have kept an amicable business relationship behind the scenes despite ongoing legal battles and public campaigns, but Apple might look at a shift away from relying on Samsung to source hardware components as a blessing in disguise.

Samsung has every reason to believe they could sell as many as 100 million Galaxy S4 handsets. Misek estimates that when the dust has settled, last year’s Galaxy S3 will have sold about 60 million units, paving the way for even greater success with its followup.

[via BGR]

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  • simpleas

    that’s a lot of phones lol

  • Crimsonshadow774

    Go Samsung.

  • IrishSid

    The S series is nice an all, but I want a new note! My note 2 is starting to feel a bit small now! I hope the 6.3″ turns out to be true.

    Love you Samsung! o/

    • AGx

      I hear ya. I went from a MT4G and it felt huge to me. Then I bought a Nexus 7 and my phone feels as small as my MT4G again =(. I need a bigger note.

      • No_Nickname90

        Y’all need to get out my face with that. A bigger Note? LoL!! Oh my gosh!! Let me at least try the Note 1st. LoL!! I’m still using my Epic 4G Touch.

        • http://www.facebook.com/lucyparanormal Daniel Tiberius

          You should have an upgrade for the S4 then eh?

          • No_Nickname90

            Or maybe the Motorola X Phone. I can’t decide. My contract expires at the end of the year and ALL the rumors. (‘o’)/

        • nycplayboy78

          Hurry up slowpoke :p

      • Joseph Lagalla

        Went from a sensation to a note, and the change was huge at first, now I think I either need a bigger note or a note tablet. better specs would be nice on the tablet front though.

        • http://www.facebook.com/lucyparanormal Daniel Tiberius

          Note 8 is coming soon!

          • Joseph Lagalla

            tbh, Im looking for something a bit bigger.

          • http://www.facebook.com/lucyparanormal Daniel Tiberius

            Note 10.1 is too big?

          • Joseph Lagalla

            I heard about the A15 processor that samsung had before they released it. And I think they could do better on the screen.

  • user311

    go samsung!

  • http://twitter.com/Defenestratus Defenestratus

    Lets clarify how its going to “hurt Apple”.

    Samsung will still make parts for it. There won’t likely be supply chain issues for Apple on account of Samsung squeezing capacity out for its S4.
    What it will do is increase the cost of the bill that Samsung sends Apple – as supply for capacity decreases, the more the cost increases.

    • Michael Landauer

      They have a contract with Apple… they can’t just change the price whenever they want.

    • Go Hawkeyes

      You’re assuming Samsung even has the capacity in the first place. Simply charging Apple more isn’t going to make capacity appear out of thin air.

      I don’t foresee problems for either party however.

  • OptimusL

    Apple, you gonna get raped!

    • nycplayboy78

      SCREAMS-n-FAINTS!!!

  • sremick

    I might be interested if Samsung would get out of this mindset that newer phones need to be BIGGER phones, and that bigger=better. If I wanted a mini-tablet that looks ridiculous when held up to my face, I already know where to buy one. My S2 is already bordering on “too big” at 4.3″. A 5″ S4 is out of the question. I want a phone no bigger than my S2 but faster, more RAM and storage with a higher-resolution screen and other nice new features. BUT NOT BIGGER. Now THAT would be an “upgrade”. Going “larger” is substituting with a whole new class of device.

    • malcmilli

      unfortunately for you, much of the market doesn’t mind the sizes that you hate

    • bakdroid

      I agree with you to a point. But to say anything over 4.3″ is too big is incorrect. Bezels make all the difference. You can easily fit close to a 5″ screen into a current handset with a 4.3″ screen (except for the Razr M). Companies need to remove the ridiculous bezels on these devices in order to go with a larger screen yet keep the body sizes from drastically increasing.

      • ilh

        I thought the 3.7 inch screen on my Desire was big but it looks tiny next to my 4.65 inch GNex screen. Not sure I could go for a bigger form factor but there’s still a good bit of bezel that could be shrunk for a bigger screen. Probably 4.8 inch screen would be the sweet spot for me, 5 at a push.

    • AGx

      A limit will eventually be reached but right now consumers want larger phones. We want something pocket sized that we can do more on and most things require bigger screens. 6″ I think would be the limit, of course I’m thinking very small or no bezel. Besides, there are plenty of good sub-5″ phones out there. On such a small screen, what do you need more power for? What the S2 and especially the S3 have is more than enough for damn near anything our phones can currently do.

      • camelsnot

        That limit hasn’t been reached and I’m sure they have UX and design experts helping figure out what the max can be.

      • sremick

        “On such a small screen, what do you need more power for?”

        Responsiveness. There’s always room for more responsiveness when heavily multi-tasking. There’s not always more room in the pocket for a larger device.

        I find it peculiar that people are telling me that 5 inches being “too big” is “wrong”. Obviously I meant “too big for me”. I don’t care if others want to hold an iPad to their face and look ridiculous. But for what fits comfortable in my hand and pockets, and looks/feels aesthetically acceptable to me, 5″ is indeed “too big”

    • http://www.facebook.com/people/Muhammad-Marsh/693934988 Muhammad Marsh

      Holding a note 2 to your face doesn’t look any more ridiculous than holding a normal phone to your ear does. The note 2 is actually the exact size I had been waiting for, and now even that is starting to look to small!

  • NardVa

    Apple lost the battle when they made the iPhone 5 with a screen size of 4 inches. Customers demanded bigger screens and Samsung delivered with GSIII and the Note II.

    • camelsnot

      $teve Job$ fault. When the EVO came out he said no one wants an SUV-sized phone. Current models were already on the roadmap for them. Timmy C and the gang are now trying to reinvent themselves, post-d*ck era.

      • OptimusL

        I love that “post-d*ck erea” haha

  • Andrew torres

    We are probably gearing up for the unveiling of a historic device, with innovative and intuitive features. This phone is probably gonna push boundaries on the hardware scale with its new Otco core Exynos, and the software side with ability for the consumers to use unique gestures. I had gotten wind of their tablets getting software, in the future, that enhances conferencing capabilities in the Corporate workplace. Hold multiple video feeds at once on your tablet or smartphone. I wouldnt doubt the software rumor I heard, because they really pushed for some actions on the GS3 and a smoother operation of the stylus on the note 2.

    • shonangreg

      With the myriad show-stopping problems Samsung has had with its desktop “Kies” software, and with the OS and software problems my Galaxy Note has (SC-05D on docomo), I’m gonna’ say that Samsung sucks at software.

  • bringiton8989

    I thought Apple were having to cut back on component orders anyway?

    I’d be surprised if Samsung manage a 60% increase on S3 sales. The S3 has been amazingly popular, but the Smartphone market shrank slightly last year, and the other Android OEMs are upping their game. People coming out of 2 year contracts now on things like the Sensation and the S2 will have a bit more choice than last year. That said, Samsung might have something astounding up their sleeves which will make me regret my Xperia Z pre-order.

    • jeremyseattle

      I don’t know, I’ve tried several of the GSIII’s peers (One X, Atrix HD, etc), and while nice, they just don’t quite live up in terms of build quality and usability. They’re building a lot of momentum with the Galaxy brand, and that will take them a long way… Just one opinion, but the sales results speak for themselves.

    • renGek

      Its hard to tell. It could very well be that on odd numbered years are when there are more customers coming off of contracts than even numbered years. They might also expect this year to be easier to snag away iphone users since apple’s new phones this year will be a minor bump of iphone 5.

  • jfrov11

    I’m holding out for 2 months to upgrade to get this phone. Not for me, I want the note 2, but for my wife so I can also enjoy the S4’s awesomeness.

  • No_Nickname90

    Of course they can. I’m saving up to get one right now. Or maybe a Note 3. IDK just yet. If I throw in $50 a month right now (which I am doing), by Dec, I’ll have way more than enough to pick one up, on contract of course.

    And Apple can’t be mad. Samsung was selling their resources to make money. Now they can use their resources on their own products. This is something Apple should have anticipated with the S3. I wonder what Apple is going to do.

  • chuckles87

    Sorry apple we cant make your toys we have to use our production lines to make real phones

    • OptimusL

      *claps*

  • Alex Alexander

    Well, people though Samsung would be troubles because Apple won’t buy more components…

    • Samsung Fanboy

      I wish I had saved the link to a story I read a while back that stated that Samsung will loose only about 10% of its business if apple stopped ordering parts from them so Samsung does not need apple.

  • james ortiz

    I can guarantee you they won’t sell that much…..I’ll give them like 75 million

    • Michael Landauer

      Yeah if the S3 sold 60 million, 100 million sounds like a stretch.

      • Samsung Fanboy

        60 million but the phone is still just over 6 months old here in the US.

  • Aaron Peromsik

    They presumably have market research and I have only speculation. But 100 million sounds kind of high to me. What percentage of the 60 million who bought the 3 will really feel the need to upgrade to the 4? How many would buy a 4 who didn’t feel the need to jump for the 3? Sure, upgrade cycles play a role… is there some reason to believe this upgrade cycle is larger than the last one?

    • renGek

      We also have to consider those who didn’t buy a GS3 because of locked in contract last year so there would be a slew of customers waiting to upgrade this year.

      • AmericanPatriot4

        ^ this. I always run on a two release cycle. Maybe even three.

    • Samsung Fanboy

      Sammy can count on me to buy at least 2 of them. :-)

  • http://twitter.com/KnowScott Scott Stafford

    Just wait till you see Apple come out with a screen size to ‘perfectly’ accommodate another row of icons. ANOTHER ROW OF ICONS. Revolutionary.

    • Ahhk

      First, they’ll need to get the patent submitted.

  • Leocal79

    There may be releases in countries that they didn’t release in before and It may be so revolutionary people will want it even if they have to upgrade early.

  • Kc

    luxtechblog.blogspot.com

  • Cory Skelton

    Wait, Apple is planning two iPhone releases this year? *confused* … why?

  • HotInEER

    Apple will probably not even care because their iPhone is not selling as well as they hoped and they had already cut production way down. They will use this as an excuse to why their magical phone is not selling or appear to be sold out and to try and build hype.

  • http://www.facebook.com/lucyparanormal Daniel Tiberius

    I hope they sell every single one of the 100,000,000 GS4s.

  • OptimusL

    Your buddy’s mother is a prostitute.

    • Fred Marshall

      ^^Holy crap…that is awesome!

      • OptimusL

        Haha thanks but he practically set me up with that first sentence.

  • http://twitter.com/707Sean Sean

    ARE YOU SERIOUS????!!!

  • pr1nyc1

    Im definitely getting the SGS4

  • master94

    100 million units. Good luck Samsung. I wish LG made a surplus, like Samsung does. Anyway, cant wait for the GS4

  • stunxklp8cr3Dwf

    Pixel densities and graphics abilities indicate to me some kind of 3D Ultra Definition tablet technology in the not to distant future. Tegra 4, Snapdragon 800 are UD capable, Nexus 10 half way to UD already, LG and HTC having made glasses free 3D smartphones, surface with 128GB flash, WiFi ac at 1GB/s. Probably won’t be long before Sony starts to sell Green Ray DVD’s at 1TB, if 5″ is 1080p (fHD,) then 10″ at 4X the surface area equals UD capable already, I like a 7″ myself and they’re cheaper to make. I’m glad my government is building optical fiber to the home, mind you if the opposition gets in, we’ll be messing with the video shop and USB 3 sticks for ages.

  • Dave Quick

    100 million..One phone for every 70 people on the planet….At about 500.$ per phone..50 Billion in sales….Samsung delivers what people want..Not what other companies think you should want…