Samsung caught offguard by Galaxy S3 demand - 0 views
-
Tristan Upton on 30 Aug 12Samsung underestimate demand for Galaxy SIII, losing a possible 2 million sales in a single month. A manufacturing glitch resulted in the slowing of production. Demand has increased substantially in the last two years, especially in the Asian market. Samsung used to only hold 10% of the market share, but they have now overtaken Apple completely. Samsung's success could be down to the price of their phones (substitution good), or the altering tastes of customers.
-
Tristan Upton on 13 Sep 12The demand curve for Samsung's Galaxy SIII would shift to the right, resulting in greater scarcity, and a required increase in supply. This did not occur in this situation. Customers were forced to ration their consumption, as some versions of the phone went out of stock completely. Price of the product would increase in most scenarios to further incentivise an increase in production, and a rationing of the good. If Samsung had kept up with their demand, they may have won some market share over other companies, but their quarterly incomes were predicted as far lower than what could have been achieved with adequate supply.