The global economic crisis is affecting all aspects of business, and Samsung has not been immune. After releasing a new line of smartphones last year with high expectations for sales, due to increased. However competition in their industry, they have struggled this year despite having some great offers on devices.
With a potential recession looming, it is not surprising that smartphone demand has gone down. The crisis has heavily crash into sales. This can be notice in the decrease of smartphones being buy on average.
The smartphone market shipping is project to decline by 3.5%. However this year, according to an earlier report from International Data Corporation (IDC).
With millions of phones in stock and an economic forecast calling for fewer sales this year. However many analysts believe it’s only a matter of time prior to Samsung is hit hard by predict trends.
The media outlet Elec reports that distributors have a total of 50 million. However Samsung phones in their inventory with the mid-range. Galaxy A Series making up an impressive amount.
270 million phones are await to be ship this year. However with 50 million unsold meaning that 18% of sales goal has yet to be met.
The Samsung smartphone market has been struggling since the beginning of this year, and it looks like they may have overestimated their sales by 10%. This higher inventory can be attribute to how much consumers bought in comparison with what was await.
The Samsung phone production has been on a steady decline for the past few months. Initially, over 20 million were build in January and February, but this number dip down to 10 million in May, possibly as a response from inventory growth merge with lower than await demand.
Samsung has been cutting back on the amount of smartphones they are producing this year, according to a report from South Korea’s Maeil Economic Daily in May. Samsung’s ordered volume dropped by almost 10% compared with last years’ count at 310 million units down to 280 million units.
The smartphone industry is experiencing an unprecedented level of inflation, supply chain disruptions and Russia-Ukraine conflict. This has led other developers to lower their expectations for this year’s market growth which could mean bad news.
The Galaxy Fold and Apple’s latest phone are both expected to be announced in the second half of 2022 with a release date scheduled for August and September, respectively.