Ryan Haines / Android Authority
- Samsung is said to be struggling to reduce shipments amid a slowing smartphone market.
- The company may have nearly twice as many devices as it normally does not sell at its global distributors.
- The majority of these products appear to be Galaxy A models.
It’s hard to be a smartphone shopper, especially when the ever-increasing cost of living is taking its toll. However, manufacturers are not exempt from the effects caused. According to a new report, Samsung may have up to 50 million smartphones in its global distributor inventory just waiting to be sold.
Samsung may have overestimated consumer demand when it set a 2022 production target of 334 million units by the end of last year. However, the unexpected decline forced the company to reduce its target to 270 million yen The Elecsource of. With that modification, the company could have nearly 20% of its annual production in distributors alone. In this case, a more standardized number would be around 10% or 27 million devices.
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This inflated stock figure shows that the global financial crisis affecting consumers is also dampening demand and thus forcing Samsung to review its manufacturing figures for the remaining six months of the year. 2022. Samsung reportedly halved its monthly smartphone production target in May, in response to lower device demand.
Samsung phones not selling: Which models are affected?
Surprisingly, it’s not the more expensive Galaxy S22 series or Galaxy Z Fold 3 waiting for buyers. Instead, Galaxy A-series devices make up the majority of unsold devices, according to a source from the Korean outlet. This further suggests that consumers may be considering other brands in the mid-range segment, sticking with their devices a bit longer, or expanding their budget to buy more expensive devices. . Traditionally, the Galaxy A series has been Samsung’s better-selling product.
It is unclear whether smartphone sales will increase in 2022. If demand remains flat, Samsung will somehow need to make space for its newer devices. This could mean further production limits that could affect the company’s newest and upcoming lines.