Samsung smartphones are no longer needed. Warehouses stocked with millions of unsold cell phones, production plummets

Posted by


In the warehouses of Samsung distributors, a total of about 50 million unsold smartphones have accumulated. This is a new anti-record. Demand for these gadgets fell, and as a result, Samsung had to make a radical cut in production – the volume of new smartphones in May 2022 was halved.

Interest in Samsung Galaxy is lost

Samsung has experienced a sharp drop in demand for its smartphones. According to the South Korean edition of The Elec, the warehouses of its distributors have accumulated around 50 million smartphones that have not been sold.

Most of this volume falls on Galaxy A series mobile phones. This is a universal line, which includes both super-cheap dialers and smartphones that are almost as good as flagships in their capabilities.

According to Samsung distributors, the company aims to sell 270 million smartphones during 2022. Thus, about 18% of this volume is currently stuck in warehouses.

As a rule, Samsung partners always have several million smartphones in stock (on a global scale). However, most often this figure is within 10% of the total annual supply, so 18% is a full-fledged anti-record.

sam600.jpg

Despite all the difficulties, Samsung still manages to maintain the world leadership in smartphone sales.

At the same time, at the end of 2021, Samsung itself set itself the goal of releasing not 270 million smartphones, as distributors calculated, but 334 million.

Production is shrinking

According to The Elec, between January and April 2022, inclusive, Samsung released about 20 million smartphones every month. At the same time, for the whole of May 2022, it produced only 10 million mobile phones, that is, the production volume fell by half. This is probably the company’s reaction to the collapse in sales.

Analysts attribute the decline in demand for Samsung smartphones to several factors. The first is the numerous coronavirus restrictions, which, however, have long been canceled in most countries of the world.

The second is the conflict between Russia and Ukraine. At the same time, the publication does not mention that Samsung stopped supplying its equipment to Russia in early March 2022, which probably also hit the sales of its smartphones. Later, Samsung mobile phones returned to Russia under the parallel import program, but there is a blocking of “gray” devices immediately after purchase.

The fact that Samsung smartphones began to sell noticeably worse is confirmed by the drop in the number of orders for components for their production. Suppliers of the Korean vendor that in April and May, 2022 they were reduced by 30-70%.

balance of power

Samsung is the world market leader in smartphones. In the first quarter of 2022, the vendor took a 23% share on it, and this is a record figure over the past two years (Counterpoint Research statistics).

Yuri Sosnin, Astra: Since February, we have been experiencing an avalanche-like growth in requests for migration

Business

However, it cannot be said that Samsung is increasing its influence in the mobile communications segment. During 2021, its share fell to 18%, and in the fourth quarter of 2020, the company completely launched into second place with 16%, leaving Apple behind from 21%.

A year and a half ago, Samsung was losing its first place. It might happen again

According to the results of the first quarter of 2022, Apple, which also left Russia, has an 18% share. The top three is closed by Xiaomi, which halved deliveries to Russia (12%). It is followed by Oppo (9%) and Vivo (8%).

In Russia, Samsung smartphones, despite the lack of new official deliveries, are still the most popular. As CNews reported, in April 2022, they accounted for 26% of sales. The second place was taken by Xiaomi with a share of 20%, the third was the Chinese Realme (11.2%). Apple dropped out of the leaderboard and took fourth place with a share of 10.3%.

It’s not just Samsung that suffers

Samsung is not the only company that has been affected by the drop in the desire of users to buy new smartphones. according to the forecasts of the research company TrendForce, this is a global trend.

CNews Analytics: Atlas of the Russian Internet of Things Market

Internet of Things

At the beginning of 2022, the company’s analysts said that 1.38 billion smartphones would be shipped worldwide for the entire year. They later cut their forecast to 1.36 billion, and in May 2022 to 1.33 billion.

Among other reasons for what is happening, TrendForce calls what is happening in Ukraine. According to analysts, this situation affects global inflation and rising prices, as a result of which consumers are forced to spend more money on essential goods and save on everything else, including gadgets.

The TrendForce report says that smartphone manufacturers, for the most part, have managed to adapt in advance to changes in the market. In the first quarter of 2022, a total of 310 million smartphones were produced, down 12.8% year-on-year. At the same time, an overabundance of mobile phones in warehouses is mentioned only to Samsung.




Source link

Leave a Reply

Your email address will not be published.