Samsung Electronics Co. Ltd (KRX: 005930) isn’t sitting back and letting Apple Inc. (NASDAQ: AAPL) take over the entire smartphone world. The company’s Samsung Galaxy S6 Edge sales are flying past expectations and the company is being forced to increase production of the screen that makes the device so desirable.
According to rumors reported by Bloomberg on Friday April 24, Samsung Electronics has ordered the expansion of the production line that manufactures the special curved screen for the Galaxy S6 Edge. That means that the device is selling well as that particular screen isn’t used in anything other than that premium smartphone.
Samsung Galaxy S6 sales jump
According to the rumor Samsung Electronics has doubled the production expected from its display division Samsung Display from 2 million to 5 million units. The people that spoke to Bloomberg said that demand for the smartphone actually exceeded that expected by the South Korean company. Samsung had been looking for the Samsung Galaxy S6 to break records with its release.
According to a Korea Times piece by Kim Choo-Yul just before the release of the Samsung Galaxy S6 Edge, the company was expecting to sell around 70 million units of the device and its partner the Samsung Galaxy S6 when it launched.
HMC Investment analyst Greg Roh said earlier this month that carriers were looking to get more of the Galaxy S6 Edge. That’s evidenced by the company’s decision to switch more production into making the screen for the curved device.
After substandard sales of the Samsung Galaxy S5 made many analysts, and Samsung executives, question the future of the company in the smartphone business. The South Korean company is not going to beat its major rival this year, but it is ahead on some aspects of its business.
Samsung challenges Apple
Even if Samsung manages to sell 5 million Samsung Galaxy Edge units per month, the company isn’t going to come close to the sales of the Apple iPhone. The Cupertino handset sold more than 200 million units last year and it’s expected to beat that number this year.
One thing Samsung is doing differently, however, is building almost all of the internal components for the Samsung Galaxy S6 Edge itself. The phone uses a Exynos 7240, and a Samsung Shannon woreless chip along with an Organic Light Emitting Diode (OLED) display made by the company.
Jim McGregor, an analyst at Tirias Research reckons this helps the company to increase profit margins, but it also does something else for the South Korean industrial concern. The Samsung Galaxy S6 Edge isn’t just a phone, it’s an advertisement for everything that Samsung does properly.