The coronavirus outbreak has taken over the world affecting millions of lives. Businesses around the world are facing hard times than they have ever before in recent years. Samsung Electronics, the world’s largest smartphone maker is one of the large companies to hit so hard. According to a report from South Korea, the firm has reduced its smartphone components orders by a whopping 50%.
The first quarter of 2020 fared well for Samsung but the same cannot be said for the second quarter. In the first three months, the company managed to sell a good number of Galaxy S20 series and Galaxy Z Flip, albeit 40% lesser than the Galaxy S10 series. But the coming months will be extremely difficult, even for the world’ largest smartphone brand.
Samsung started manufacturing its new flagship smartphones three months ahead of its release. Ever since COVID-19 virus spread across the world, the company had to shut down its smartphone manufacturing facilities in South Korea, India, and Brazil. Additionally, supply chains have been severely affected.
This has now led the company to cut off smartphone components orders by 50% as the demand, means of sale, as well as way of manufacturing, have been disturbed. Samsung is known for making more than 300 million smartphones every year raging across different price brackets. But now with reduced orders, there’s no way it could continue its streak in 2020.
Above all, the worst-hit are those components manufacturers. One of the representatives of such company even calls the current situation ‘a death sentence’.
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