According to a new report out of South Korea, Samsung is having an inventory problem. It currently has over 50 million smartphones in stock. These phones are just "sitting" there waiting for someone to buy them because there doesn't seem to be enough interest in them.
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As reported by The Elec website, a large part of these devices are series models Galaxy A. This is somewhat strange, because this series is one of the most popular in Samsung's smartphone portfolio. According to the website, the Korean giant plans to ship 270 million smartphones to the global market this year, and 50 million represents almost a fifth of that amount. "Healthy" inventory numbers should be at or below 10%. So Samsung obviously has a problem with insufficient demand for these devices.
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The website noted that Samsung produced roughly 20 million smartphones per month at the start of the year, but that number reportedly dropped to 10 million in May. This may have been a reaction to too many pieces in stock and little demand. Lower demand also reportedly caused the company to cut component orders from suppliers by 30-70% in April and May. Demand for smartphones is generally lower than expected this year. According to analysts, the main culprits are the covid lockdowns in China, the Russian invasion of Ukraine and the increased price of raw materials.
So let Samsung make these warehouses cheaper and they will be gone...
Both Samsung and other retailers still have some promotions going on, so the company is clearly trying to do something about it.
The solution is very easy. It's just about the price, and the A series is not exactly cheap anymore. The second reason is that the HW of a phone for five liters is already enough that ordinary people do not need to spend more for a phone.