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Lenovo exec claims Samsung only sold 20K Galaxy Tabs in 2010

updated 01:20 pm EDT, Sat September 3, 2011

Lenovo believes early Samsung GTab sales very low

Lenovo's Western Europe consumer product director Andrew Barrow leveled a significant accusation against Samsung at IFA on Friday. He claimed that, of Samsung's million Galaxy Tabs shipped through its first two months in 2010, only 20,000 had actually been sold. While he didn't say whether this was based on inside knowledge or just an estimate, the executive told The Guardian that Samsung was effectively channel stuffing, or shipping far more than it could realistically sell, to make it appear that the Galaxy Tab was more of a competitor to the iPad than it was at the time.

"We [at Lenovo] don't feel the need to buy share from Apple," Barrow said. "If the product sells, it sells."

The figure would be extremely low. Little question exists that Samsung didn't sell as many Galaxy Tabs as it shipped, given a complete lack of shortages and queues, but most analysts and other observers still believe Samsung would have sold at least a few hundred thousand. The Korean firm itself inadvertently stoked rumors when many thought they had heard the company say that real, end-user sell-through was "quite small" and came back to say that its results were actually "quite smooth."

The company nonetheless has a problem with reporting shipments versus sales. It took three million Galaxy S II pre-orders but, unusually, went on to report three million sales in 55 days. If consistent, it would have had either a minimum two-month backlog of demand or else large numbers of customers cancelling pre-orders as on-the-spot buyers came in.

Many retailers are willing to tolerate a significant amount of overstock, but severe problems usually get reported quickly. When only 25,000 HP TouchPads sold at Best Buy out of 270,000 in stock, the retailer threatened that it would refuse to pay for the unsold stock and wanted it returned to HP. Samsung's expansion to include the Tab 10.1 as well as the future 7.7 and 8.9 at least hint that Samsung is confident enough to keep making sequel products.

Apple is believed to have seen the iPad's market share in tablets drop to about two thirds, although that number is only based on the official shipment numbers firms are willing to give. Publicly, Apple has repeatedly said it's still selling every iPad it ships outside of a minimum necessary inventory; if true, its real-world market share is higher with Samsung, RIM, Acer, Motorola, and others all falling short of their targets.

Samsung hasn't responded to Barrow's statements but is likely to dispute them.



By Electronista Staff
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Comments

  1. Bobfozz

    Fresh-Faced Recruit

    Joined: Jul 2008

    +17

    I don't trust Samsung on anything...

    I am surprised Apple uses them as a supplier.

    Comment buried. Show
  1. Arne_Saknussemm

    Forum Regular

    Joined: Apr 2011

    -20

    Yep,

    Just like Western Digital claims Seagate only sold 20K drives last year...

  1. garmonbosia

    Fresh-Faced Recruit

    Joined: Aug 2002

    +14

    This is news?

    I'm sorry, but if a news organization reports shipments as being the same as sales they are either stupid or they are paid liars. Since Apple only reports sales, a credible reporter should never compare them with another company's shipments.

  1. facebook_Robert

    Via Facebook

    Joined: Sep 2011

    +1

    hard to believe = don't believe it

    It's true that we should count apples to apples - sales to sales.

    But the very idea that they made 1 million and sold 20,000 - what are they doing with the others, burying them in an epic tablet landfill?

    No way best buy would sit on 250,000 unsold tablets for a year - we know that they don't do that.

    So to believe this story, is to believe samsung had 500,000 returned tablets, and yet kept building more, until they reached 1 million unsold tablet - please.

    The galaxy tab didn't set the world on fire, but it had the market to itself, more or less, last Christmas, and we know there was some interest - way more than 20,000.

  1. facebook_Shane

    Via Facebook

    Joined: Sep 2011

    +3

    comment title

    They try to sell other non iPad tablets here but after reading this article I realized I have never seen one outside the shop other than a single Acer 7". Maybe Im blind but I sure have seen plenty of iPads .. Interesting.

  1. facebook_Shane

    Via Facebook

    Joined: Sep 2011

    +2

    comment title

    They try to sell other non iPad tablets here but after reading this article I realized I have never seen one outside the shop other than a single Acer 7". Maybe Im blind but I sure have seen plenty of iPads .. Interesting.

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