Demand outpaces supply as B2B left waiting for Samsung Note7

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Manufacturer reassures resellers following stock allocation problems

Samsung has told its reseller partners they are its “priority” after they were left frustrated at not being able to obtain enough stock of the Galaxy Note7 to satisfy demand.

The manufacturer unveiled the device last month, with it due to go on sale last Friday (September 2). It is the first Note phablet to be released in the UK for two years.

However, Samsung has admitted all Note7 pre-order stock had sold out in the UK, with registrations for it on its digital channels exceeding that of the Galaxy S7 and S7 edge.

This has led to a limit being imposed on the European pre-order allocation for the Note7 in order to meet as much of the anticipated public demand as possible when it goes on general sale.

Allocation issues

As a result, availability in Europe is being phased. The scheduled UK launch has gone ahead, but some countries will launch on either September 9 or 16.

Darren Ridge, CEO of the UK’s biggest B2B dealer by connections (250,000), admitted there have been problems with stock allocation but has been assured by Samsung these are being rectified at the earliest possible opportunity.

“There are certainly supply/ demand issues with the Galaxy Note7 but despite this being tight, Samsung has told us they are prioritising the indirect channel and are doing everything they can to fulfil stock allocation,” he said.

Frustrations

A leading O2 dealer added: “I don’t think we’ll be able to fulfil all orders on the release date. It is frustrating but because Samsung’s engagement with the channel has improved so much recently, I’m confident this won’t be a long- term problem.”

A Samsung spokesperson told Mobile News it was “investigating” the issue.

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