CNET takes a look at why 800,000 units over two months isn't as impressive as it first seems. November 19, 2013 8:52 AM PST The Galaxy Gear watch in action. (Credit: Brian Bennett/CNET) The Galaxy Gear recorded 800,000 worth of unit sales over its first two months -- so it's a hit, right? Not exactly. The figure Samsung disclosed is actually the number of smartwatches the Korean tech giant shipped to retailers and partners, and isn't actually a true reflection of consumer demand. Korean publication Yonhap reported the numbers represented shipments, and not sales to consumers, and the Verge confirmed the report. Samsung couldn't immediately be reached for comment. Related stories Galaxy Gear tops 800,000 units sold in two months iSheep, Fandroids, and why we care so damn much about our smartphones Samsung sells Galaxy Gear with help of Miley Cyrus' undergear Apple, Samsung rest cases ahead of final arguments Tuesday Apple's bid to ban Samsung products may be back in play Samsung released the shipment numbers to Reuters earlier on Tuesday likely as a bit of damage control. Korean news site BusinessKorea reported that the Galaxy Gear has recorded sales of only 50,000, with daily sales of 800 to 900 units. Samsung hasn't disclosed any direct sales numbers, but if its performance is anywhere close to BusinessKorea's figure, it would be considered a flop. "50,000 is a rounding error in device sales," said Maribel Lopez, an analyst at Lopez Research. That the Galaxy Gear could be facing trouble in the market shouldn't come as a big surprise. The Gear was almost universally panned when it first came out, with critics knocking its limited capabilities, low battery life, and sole initial compatibility with the Galaxy Note 3. In his review, CNET UK editor Andrew Hoyle said it "falls well short of expectations." To be fair to Samsung, the company typically releases shipment numbers, as is the norm in the handset industry. The company doesn't typically sell direct to consumer, instead relying on its channel of retailers and carrier partners. That, however, doesn't guarantee success in the consumer marketplace. It wasn't until recent years that Samsung even disclosed actual sales to consumers, known in the industry as sell-through numbers (sales to retailers are known as sell-in numbers). On select occasion, Samsung will disclose sellthrough numbers of devices like the Galaxy Note in an effort to quell doubt about its demand. This looks to be the case again, although Samsung is employing the more impressive sounding shipment number. It may have backfired, with many news sites and blogs jumping on the tactic as simple corporate spin. The initial negativity likely won't slow Samsung down from moving on with a next-generation Galaxy Gear, and a Gear after that. The company has indicated it wouldn't give up on the market for smartwatches any time soon. "It's a new category and it's unproven," Lopez said. "We won't really know until they are on Gen 2 or 3 if it will fly."
CNET takes a look at why 800,000 units over two months isn't as impressive as it first seems.
The Galaxy Gear watch in action.
(Credit: Brian Bennett/CNET)
The Galaxy Gear recorded 800,000 worth of unit sales over its first two months -- so it's a hit, right?
Not exactly. The figure Samsung disclosed is actually the number of smartwatches the Korean tech giant shipped to retailers and partners, and isn't actually a true reflection of consumer demand. Korean publication Yonhap reported the numbers represented shipments, and not sales to consumers, and the Verge confirmed the report.
Samsung couldn't immediately be reached for comment.
Related stories
- Galaxy Gear tops 800,000 units sold in two months
- iSheep, Fandroids, and why we care so damn much about our smartphones
- Samsung sells Galaxy Gear with help of Miley Cyrus' undergear
- Apple, Samsung rest cases ahead of final arguments Tuesday
- Apple's bid to ban Samsung products may be back in play
Samsung released the shipment numbers to Reuters earlier on Tuesday likely as a bit of damage control. Korean news site BusinessKorea reported that the Galaxy Gear has recorded sales of only 50,000, with daily sales of 800 to 900 units. Samsung hasn't disclosed any direct sales numbers, but if its performance is anywhere close to BusinessKorea's figure, it would be considered a flop.
"50,000 is a rounding error in device sales," said Maribel Lopez, an analyst at Lopez Research.
That the Galaxy Gear could be facing trouble in the market shouldn't come as a big surprise. The Gear was almost universally panned when it first came out, with critics knocking its limited capabilities, low battery life, and sole initial compatibility with the Galaxy Note 3. In his review, CNET UK editor Andrew Hoyle said it "falls well short of expectations."
To be fair to Samsung, the company typically releases shipment numbers, as is the norm in the handset industry. The company doesn't typically sell direct to consumer, instead relying on its channel of retailers and carrier partners. That, however, doesn't guarantee success in the consumer marketplace.
It wasn't until recent years that Samsung even disclosed actual sales to consumers, known in the industry as sell-through numbers (sales to retailers are known as sell-in numbers). On select occasion, Samsung will disclose sellthrough numbers of devices like the Galaxy Note in an effort to quell doubt about its demand.
This looks to be the case again, although Samsung is employing the more impressive sounding shipment number.
It may have backfired, with many news sites and blogs jumping on the tactic as simple corporate spin.
The initial negativity likely won't slow Samsung down from moving on with a next-generation Galaxy Gear, and a Gear after that. The company has indicated it wouldn't give up on the market for smartwatches any time soon.
"It's a new category and it's unproven," Lopez said. "We won't really know until they are on Gen 2 or 3 if it will fly."
