Is Samsung's Galaxy Gear Smart Watch a Success or Failure?

Is Samsung's (NASDAQOTH: SSNLF  ) Galaxy Gear smart watch a success or failure? The answer varies according to what number you are looking at. Samsung shocked the overall investing community by reporting it had sold 800 thousand units in its first two months.

However, other sources report a much lower sales figure. Business Korea pegs Galaxy Gear sales at a much lower 50 thousand figure.

So, why the huge discrepancy?

It all depends upon the meaning of the word "sale." Samsung eventually admitted that it meant "shipped" instead of "sold." This is an important distinction -- shipped merely means the watch is in the retail distribution network. In essence, it's been sent to third-party vendors. Business Korea's number, on the other hand, consists of only end-user purchases.

If Business Korea's number is correct, that leaves Samsung with a potential inventory issue for the Galaxy Gear. In addition, things may not get better for smart watches this holiday season -- Gartner recently reported that it doesn't think this season will bring high demand for smart watches.

In this version of Tech Teardown, Quick Minute Fool, Jamal Carnette, discusses Samsung's Galaxy Gear smart watch.

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  • Report this Comment On November 21, 2013, at 5:03 PM, melegross wrote:

    This isn't surprising for Samsung. During the Apple, Samsung trial begun here beginning of 2013, it was shown that of over a million Samsung tablets shipped to the US, only 38,000 were sold.

    Going back to the end of 2010, Samsung claimed to have shipped 1.5 million tablets to the US, so Gartner said that Apple's tablet marketshare fell to 83%.

    But then Lenovo said that Samsung only sold 20,000 of those tablets, and Samsung refused to respond when asked about it. At the end of the first calendar year quarter of 2011, Samsung then announced that it would no longer provide quarterly shipped numbers of smartphones and tablets. One wonders why?

    This just seems like a repeat. Samsung is not an honest company.

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