Samsung's smartphone component suppliers are reportedly in deep trouble after posting one of their worst months in more than 10 years. The Korean giant's orders have fallen due to a drop in smartphone sales, with September reportedly being its worst month in more than a decade for some.
Due to much smaller orders, one of Samsung's component suppliers had to close its manufacturing plant for the first time in 15 years. Another company halved its optical filter yield for the first time since the outbreak of the coronavirus pandemic. And one unnamed photo module supplier lost half of its average monthly revenue.
Gallery
According to Korean website ETNews, cited by SamMobile, all but one of Samsung's suppliers saw lower production output due to weaker smartphone sales and weak demand. All camera component suppliers are said to have reduced production output by double digits in the second quarter. One of these companies, which used to have a production performance of 97%, had to "turn it down" to 74% this year, another from 90% to roughly 60%.
You could be interested in
Samsung is said to continue to reduce orders during the third quarter. The penultimate quarter is usually the peak season for his suppliers, but not this year. However, according to an unnamed official close to the supply business, the situation could improve by the end of the year and component orders could increase again. So let's hope the smartphone market bounces back from its bottom and sales rise.
