Samsung expects Galaxy S8 to outsell S7

By Kang Seung-woo

NEW YORK — Samsung Electronics expects its new Galaxy S8 smartphone to outsell its successful predecessor, the S7.

The new handset is drawing rave reviews after it was unveiled Wednesday (local time) in two different models — the standard S8 with a 5.8-inch display and a larger Galaxy S8 Plus with a 6.2-inch screen.

Samsung sold about 50 million Galaxy S7s and Galaxy S7 edges in 2016 after releasing them in March, with the lineup working overtime to fill the void left by its jumbo smartphone, the Galaxy Note 7 that was recalled late last year due to battery fire issues.

“I am looking forward to hearing good news,” said Koh Dong-jin, the president of Samsung Electronics’ mobile communications business, in a press conference. “After collecting opinions from many people, including consumers and clients, I can guess that the S8’s sales tally could top that of the S7.”

However, Koh did not elaborate on how many he anticipates to move.

Even ahead of the S8 launch, market watchers forecast that the latest phone would surpass its previous model in terms of global sales.

“The global sales of the Galaxy S8 are expected to top 60 million. It will establish itself as a successful model,” said Noh Kyeong-tak, an analyst at Eugene Investment and Securities, earlier this month.

In order to achieve this, Samsung needs to put on a good show in China which accounts for 30 percent of the global smartphone market.

The Korean tech giant’s market share in China slid from 19.7 percent in 2013 to 5 percent in 2016.

Koh also agreed with the significance of the Chinese market.

“China was our third biggest market three years ago, but we are struggling there now,” he said.

According to the president, Samsung recently replaced the Chinese office’s chief in charge of its smartphone business.

“Having regrouped, we are trying to make a comeback.”

One challenge would be the sour Sino-Korea relationship after Seoul’s decision to deploy a U.S. missile defense system despite strong opposition from Beijing. This has led to the latter’s economic retaliation on the former. Worse, Chinese consumers shun Korean brands.

However, Koh believes that if Samsung manufactures good products, the Chinese will not avoid them regardless of the diplomatic row.

“Chinese consumers are mainly fair, so high-quality products will sell well. After making up for our mistakes, I will try to reclaim the firm’s old glory,” he said.

However, he did not elaborate when the S8 will be available in China. The firm will get preorders for the devices early next month in Korea, the United States and Canada where they will be delivered to customers starting April 14, before expanding to other countries.

Samsung will also focus on meeting initial demand for the S8, which is expected to be huge.

According to industry sources, Samsung may face hurdles in securing sufficient components for its latest smartphones, as production could fall behind market expectations.

“We will start to sell products with sufficient stock,” Koh said, adding that there will be no concerns over supply shortages.