Due to the inflation and COVID lockdowns, Samsung distributors have a smartphone stock of up to 50 million units it’s been revealed by Korean media TheElec, while a large part of them are mid-range Galaxy A series phones.
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As per the report, this year, Samsung is aiming to ship around 270 million smartphones, 50 million of which account for 18%. The relatively healthy figure is around 10%, as high as 18 % of the inventory shows that Samsung is suffering from slow smartphone demand.
Previously in January and February 2022, the company produced about 20 million smartphones per month, but, production slipped to 10 million in May, likely due to excess inventory and low demand.
Moreover, in Q4, 2021, Samsung had set an ambitious annual production target of about 334 million units for 2022. In terms of shipments, the target will be around 300 million units, but this year, the demand for smartphones is lower than expected, so Samsung slashed component orders from its suppliers by 30% to 70% in April and May.
However, it was reported that Samsung temporarily stopped new purchase orders earlier this month and asked multiple suppliers to delay or reduce component shipments for several weeks due to concerns about high inventories and global inflation.
