The global crisis is leading to reduced demand for products across industries. Companies like Samsung have to adapt. Earlier, there were reports in the air that the Korean tech giant is significantly reducing the production of smartphones. Now it looks like it's facing similar pressures in other parts of the business.
According to the website The Korea Times restricts Samsung's production of televisions and home appliances in addition to phones. He said he had to take this step due to difficult global economic conditions. Uncertainty about the conflict between Ukraine and Russia is also putting pressure on demand.
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The market survey also shows that Samsung's inventory turnover in the second quarter of this year took an average of 94 days, two weeks longer than last year. Inventory turnover time is the number of days it takes for inventory that is in stock to be sold to customers. The cost burden on the manufacturer is reduced if the inventory turnover is shorter. Data from the Korean giant shows that these products are selling much more slowly than before.
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A similar trend can be seen in Samsung's smartphone division. According to a new report, it currently has around 50 million in stock phones, in which there is no interest. That's roughly 18% of expected deliveries for this year. Samsung has reportedly already cut smartphone production by 30 million units for this year. Experts predict that the global economic situation will continue to deteriorate. How long this condition will last is up in the air at this point.
