Lies, Damned Lies and Statistics

Interesting couple of days of mud slinging around the sales of the Galaxy Tab. First Samsung confirmed that its sales numbers were into the distribution channel. Which was leapt on as mis-representative in much the same way as Microsoft's announcement of Windows Phone 7 numbers after Christmas.

Which shows ignorance of how the sales model works. Dell and Apple will announce sales numbers based on sales to end users because their sales models are mostly direct. Even then there will be some distribution sales included as both now have retail partners. Microsoft sells WP7 to OEMs, so when it days it has sold 2 million licenses that's where they have gone.

Samsung sells via retail so when it says that it has sold 2 million that's where they have gone. How many have subsequently sold to customers isn't really their concern. If distribution keeps ordering more - which appears to be the case - then you can be sure they are selling well.

The Wall Street Journal then reported that a Samsung employee had classified sell out (the number of sales from distribution onwards) as 'quite small'. As you can imagine this kicked up a firestorm around the web.

Except that she didn't say it. What she said was 'quite smooth' and having listened to the audio of the call I can say there is no ambiguity about that.

Why would the Wall Street Journal make such a howler? Could it be because of owner News Corporation's vested interest in the success of the iPad? Its heavy investment in iPad titles and its forthcoming iPad only paper?

Update: The WSJ says that the error was the result of a poor transcript of the call provided by... Samsung! Seriously Samsung, get yourself a proof reader...