Business, Hardware

Samsung Boasts 40M Galaxy S4 Sales, Gets Fined For Deceptive Marketing Practices

According to some Korean media quoting a Samsung exec, the company has recently shipped its 40 millionth Galaxy S4 flagship smartphone. At the same time, the company got fined for deceptive marketing practices reported back in mid-April.

After the Galaxy S4 first went on sale in April, it hit the 10 million mark of shipped units in less than a month. Things have slowed down since, with 20 million mark hit in July ? and 40 million now. Still, the company seemingly has no reasons to complain about sales results, though many note how sales thus far have been similar to the predecessor – the Galaxy S3. The new report came just in time when the rumors of the Galaxy S5 launching in January reached their peak. Reason behind the rumored early launch next year is said to be the (unexpected) decline in sales. The latter info in particular should be taken with a pinch of salt.

The South Korean company was under investigation by the Taiwan’s Fair Trade Commission for months now ? and this Thursday they unveiled that the company is guilty. The inquiry was open following the allegations that they paid students to post malicious comments about the competing device manufacturer ? HTC, while praising the Samsung units. At that time (April 2013), Samsung said they have encouraged their employees worldwide to ?remain faithful to their Credo? while stopping most of the Internet marketing in Taiwan. Highest possible penalty at that time was said to be around $835K.

Samsung indeed got fined ? but merely with around $340K. Taiwan?s FTC said that Samsung used a large number of hired writers as well as designated employees to post the comments on the web. ?Fortunate? part for the Samsung was that they didn?t do this directly, but through a hired marketing company (as well as subsidiaries). Curiously enough, the FTC ruling didn?t mention the HTC. Samsung reportedly said that they regret the decision, and that they will ?take the necessary steps to maintain the credibility of the company.?