A new report has revealed some interesting information regarding Samsung and its smartphone operations. Apparently, the low demand in the handset market has caused a surplus in its smartphone inventory and the figure is huge.
According to TheElec, the South Korean tech giant has a large stockpile of smartphones that have reached 50 million in number. Furthermore, sources have claimed that the Galaxy A series made up a large portion of smartphones that is in this inventory. These are being readied to be sold, as per one of the source. Samsung is planning on shipping around 270 million units of smartphones in this year. So, 50 million would mean that the large inventory accounts for around 18 percent of its shipment goals.
The report further added that a more balanced figure would’ve been around 10 percent, so the figure basically implies that the brand is currently facing low demand for its smartphones. Just in the month from January to February 2022, the company had produced around 20 million units of smartphones. However, this figure halved to 10 million units in May. In other words, this drop in production is probably due to the existing large stockpile of handsets that have not been sold yet.
As of right now, the demand for smartphones have dipped across all segments. There have been multiple reasons for this including lockdowns in China due to the Coronavirus, global economic state, surge in raw materials, the ongoing invasion of Russia into Ukraine, among others. Thus, Samsung has also lowered its component orders from its supports by around 30 to 70 percent from April to May.
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