Samsung’s smartphone warehouses are filling up as sales are disappointing by estimates. South Korean publication Elec suspects that the declining demand is a result of Covid-19, the Russian invasion of Ukraine and rising prices. It is estimated that there are 50 million units still waiting for buyers.
That’s about 18 percent of projected sales for the full year, which was recently reduced to 270 million. A normal level wouldn’t be much higher than 10 percent or it could be even lower. Most of the stock is made up of the A series, which also has the largest market share.
Samsung is responding by cutting production in May to 10 million units, halving it from the first months of 2022. Component orders from suppliers decreased by 30 to 70 percent. It is not yet known what this drop in sales and rising prices will mean for financial results, but the impact will not be positive.
Source: WinFuture
Source: Hardware Info
