South Korean phone manufacturer Samsung is left with a ‘staggering’ 50 million unsold phones in stock. Apparently, the company is struggling to unload the phones due to the low demand in the market caused by the global economic slowdown.
Low demands for phones from rising inflation, disruption in the supply chain, and the war in Ukraine have contributed to the smartphone market slump in recent months.
The Elec reports that the distributors have 50 million unsold phones in the inventory. But it is not the high-end phones such as Galaxy S22 Ultra staying in the inventory. The source especially singles out the Galaxy A series to have constituted “a huge portion” of the phones that didn’t find buyers.
It should not be a surprise that a phone maker would not be in this undesirable position. Phone market slump has been predicted before. Earlier, IDC estimated that smartphone shipments would decrease by 3.5% in 2022.
It is said that the misfortune worsened for Samsung because it overestimated the market demands early this year.
The same report says that Samsung produced around 20 million phones a month in January and February. However, the number came crashing to 10 million in May. It was probably due to the phone maker taking cognizance of the flat demands for its phones in the market.
But it’s not just Samsung facing a sales crisis. Apple has also found it hard to reach new buyers this year.
It is reported that Apple would produce 20% fewer iPhone SE units in the next quarter than it planned earlier. Again, low demands in the market were the cause behind it, Nikkei Asia wrote.
Meanwhile, Samsung and Apple both have important events approaching in the second half of 2022. Samsung could unveil the Galaxy Z Fold 4 and Galaxy Z Flip 4 on August 10th. The following month, Apple could announce the hotly-anticipated iPhone 14 series. Find more: Samsung Galaxy Z Flip 3 5G Launched in Nepal | Buy it Anywhere
Both companies would hope for things to improve from the third quarter of the year. Otherwise, both companies may see their inventory growing of unsold handsets.