Samsung has 50 million smartphones in stock

Samsung has 50 million smartphones in stock

According to a new report from The Elec , Samsung has almost 50 million smartphones in stock waiting to be sold. Interestingly, most unsold phones are Samsung Galaxy A mid-range smartphones. In previous years, they were consistently among the best-selling equipment in the world.

The 50 million facility stock represents more than 18% of the estimated supply of 270 million units in 2022. Usually, only about 10% of the total annual supply remains in the distributors' stock at this time. Almost double the number of unsold units is therefore a worrying sign for Samsung, as well as for the entire smartphone industry. The Korean giant will probably have to apply significant discounts to most of its models in order to be able to sell its stocks.

Weak demand for affordable Samsung devices suggests that people buying phones in this price range are paying the price for the global economic situation. Some consumers may also be more attracted to smartphones from competitors. For example, Xiaomi, Redmi or Poco, which generally offer a better price-performance ratio. Poco will also launch two new mid-range smartphones tomorrow - the Poco X4 GT 5G and the Poco F4 5G.

SAMSUNG - WHAT WILL HAPPEN TO THE 50 MILLION PHONES IN STOCK? 

However, we know that most of the manufacturer's fans still like the Galaxy A. In 2021, they accounted for more than 50% of Samsung smartphones sold. "The mid-range A-Series has been a major driver of Samsung's smartphone catalog over the past few years," said Liz Lee, chief analyst at Counterpoint. Unfortunately, things seem to have changed for Samsung.

A report by The Elec now announces that Samsung makes 20 million smartphones a month. It covers the period from January to February 2022. In order to better respond to the decline in demand and high inventories, the Korean company apparently halved production in May, to just 10 million units. The problem, as has often been the case for almost two years, is the closure of Covid-19 in China, the Russian invasion of Ukraine and rising commodity prices.

The Korean company may have overestimated consumer demand when it set a production target of 334 million units by 2022 at the end of last year. However, an unexpected slowdown, according to The Elec, forced the company to reduce its supply targets to 270 million. In total, there would be almost 30 million fewer Samsung smartphones to be built this year. Component orders from Samsung suppliers also fell by 30 to 70% between April and May. This was due to a drop in demand.

Wait for SCODE

00:59

Rate this article:

Rated !!

You already rated!!!

You must login to rate

Share this article:

Related articles

Apr 21, 2024

Discover the Huawei Pura 70 Ultra: Unveiling Its Superior Camera and Advanced Features

Apr 18, 2024

Sony presents a new line of speakers and headphones ULT POWER SOUND

Apr 16, 2024

Samsung Galaxy C55 Geekbench Results Revealed: Snapdragon 7 Gen1, Android 14, and More

Apr 16, 2024

Xiaomi 14T and 14T Pro - first information

Mar 25, 2024

OnePlus Ace 3V debuts with Snapdragon 7+ Gen3

Mar 25, 2024

Poco C61 shows design, parameters and prices

Mar 25, 2024

Enter the Warzone: Activision Unveils Call of Duty's Mobile Battle Royale Experience

Mar 08, 2024

The launch date of the Huawei P70 series has been postponed

Mar 08, 2024

Unveiling the Infinix Note 40 Pro+ 5G: Box Leak Confirms Lightning-Fast Charging for March 18 Global Launch

Feb 26, 2024

Vivo Y100T: A powerful mid-range model

Feb 26, 2024

HMD will introduce a Barbie flip phone this summer

Feb 26, 2024

Xiaomi 14 Ultra is here with Summilux lens