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Samsung claims Galaxy Tab return rate below two percent

updated 10:40 am EST, Thu February 3, 2011

Samsung says Galaxy Tab returns in US under 2pc

Samsung took further steps to try and control what it saw as damage to its image with a terse statement challenging analysts' claims of high Galaxy Tab return rates. It disputed ITG's observations of up to 15 percent return rates as "incorrect." The actual return rate in the US was under two percent, the company said.

Its comment followed just days after it said it had been misquoted in its results call as to its sell-through rate to real customers. A WSJ journalist had heard they were "quite small" when executive Lee Young-hee had said they were "quite smooth."

The remarks put Galaxy Tab refunds in line with those with the iPad, which ITG said was also at two percent. It's unclear what ITG's exact methodology was. Analyst studies, however, usually go on a small sample of hundreds or thousands of transactions where Samsung can get information directly from retailers that it normally keeps secret.

How well the Galaxy Tab has actually sold still remains a mystery. Although its quoted shipments of 1.5 million in 2010 are now closer to what was reflected in actual users, it had admitted during the same disputed fiscal results call that take-up hadn't been as fast as expected. Apple wouldn't have sold all the 7.33 million iPads it delivered in the same period, but it has quoted strong demand and has been selling virtually every tablet not set aside for replacements or other needed supplies.



By Electronista Staff
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Comments

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008

    +3

    15% return rate did seem a bit high...

    considering there were no major flaws in the device.

    I'll never understand how most companies are able to cover up how many devices they're selling. It seems as though Kindle sales are never precisely revealed, yet with Apple devices sales are revealed in great detail.

  1. Jonathan-Tanya

    Fresh-Faced Recruit

    Joined: Oct 2004

    -7

    the issue is slightly over stated

    It gets a bit old, the constant discussion of sell thru.

    Ultimately everything you manufacture is sold, or put in a landfill.

    I don't think the Galaxy Tab is a landfill event. If they've flooded the channel, they may have to steep discount to get a surplus through the channel.

    To date, they haven't done that. They will probably just slow down manufacturing, or even halt it ahead of a new model's release to clear the channel.

    Everyone, and I mean everyone, has to have some models sitting on a shelf - the alternative is that the shelf is completely bare - that would actually hurt sales to not have any in stock, on a permanent basis.

    So - I mean the story about the 'surprise' that not everything made has been sold yet - when that is normal and ideal to have stock on hand - is just so tiring.

    Has GT sold a bit slower than Samsung hoped? I don't know or care, I hope that overpriced junk doesn't sell.

    WAY TOO EXPENSIVE for a 7" tablet. I like Android, I hope the 3.0 android experience is a good one, and new tablets that aren't overpriced or tied to expensive contracts, end up selling well....but the GT, yeck, it stinks.

  1. MadGoat

    Fresh-Faced Recruit

    Joined: Feb 2008

    +7

    @iphonerulez

    iphonerulez, I think the reason that Apple reveals its numbers is that it has nothing to prove. While Samsung is just trying to save face and saying their device selling well.

    "Good" can mean anything from a few hundred a day to a several thousand. Who knows how they define "good" is?

  1. erics

    Fresh-Faced Recruit

    Joined: Sep 2010

    0

    2%?

    Curious as to what their 2% is compared to iPads 2% :)
    I tried a Samsung and it wasnt that bad but not worth it.
    I use my iPad daily so Im probably biased.

  1. srmoll

    Fresh-Faced Recruit

    Joined: Sep 2004

    -1

    Different Return Rates?

    ITG may be reporting on return rates to the retailer. The devices may be being returned for reasons other than a manufacturing fault or failure of the device, simply returned because it didn't meet the customers expectations or needs.

    I would expect return rates to dealers and retailers to be higher than manufacturer returns for this reason.

  1. climacs

    Forum Regular

    Joined: Sep 2001

    0

    I'm amazed

    that a 7" tablet sells for $499 vs. the iPad, larger with better apps and not much more for the wifi version which suits most people just fine. I'm amazed they sell that many G-Tabs at all.

  1. chippie

    Fresh-Faced Recruit

    Joined: May 2009

    +3

    @ climacs

    Size is a matter of preference. The Galaxy Tab has front and back cameras plus SD card slot. And it has bluetooth 3.0, which is the fastest version of bluetooth. These, I'm sure are a few reasons that it is selling. And these are a few reasons that ipad2 will adopt some of these features.

  1. ricardogf

    Fresh-Faced Recruit

    Joined: Jan 2003

    +1

    Tested

    I tested one of these POS tablets at a local store the other day...there is absolutely NO comparison in terms of sheer speed and fluidity of the UI, as well as the overall user experience on the poor Galaxy.

    The question is not whether 15% of the devices are being returned; it's how someone would WANT to buy them in the first place.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +3

    @chippie

    Size is a matter of preference.

    No it isn't! Steve Jobs has mocked the 7" screen size. And we know Apple would have done all sorts of studies and they found that 10" was the exact perfect size for a tablet.

    The Galaxy Tab has front and back cameras plus SD card slot. And it has bluetooth 3.0, which is the fastest version of bluetooth.

    Sorry, but now you're just throwing 'specs' around. Trying to overwhelm people with useless features. Who needs 'cameras' or 'SD Card slots'? It's just complicating a product.

    It's like those silly laptop makers who say "Our laptop is a better deal because it costs the same as a MacBookPro, but has more USB ports, standard DVI video, eSATA, ExpressCard/54 and PC Card slots." Who the h*** needs any of those?

    These, I'm sure are a few reasons that it is selling. And these are a few reasons that ipad2 will adopt some of these features.

    And there you are completely wrong. For we know these companies, like Samsung, only added these features because they heard the rumors that Apple would add these features some day, and they were just trying to 'beat' Apple. As such, it is again just more companies copying Apple's lead, regardless of where Apple actually is.

  1. global.philosopher

    Fresh-Faced Recruit

    Joined: Sep 2010

    -2

    More spin from Samsung

    is that 2% from customers to retailers or 2% from retailers to Samsung? I suspect most retailers are reselling them when customers returned them so the 2% Samsung is reporting is what is being returned from retailers to Samsung due to manufacting faults.

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