Samsung has 50 million smartphones lying around in its inventory due to low demand
While Samsung smartphones are still one of the best selling in the world, 2022 has bought forth a new conundrum for the South Korean electronics giant. Until now, companies had a tough time securing enough raw material supply to keep their production lines operational. Now that the supply chain constraints have eased up, the situation has taken a complete 180-degree turn.
A report by The Elec states that it has 50 million smartphones in unsold inventory- nearly 18% of the phones it planned to sell in 2022. It isn't unusual for companies to have leftover stock, but 18% is far too high, and the ideal figure is somewhere around 10%. This has prompted Samsung to stymy its production capabilities and reduce the number of components required for manufacturing a smartphone. The next logical step will likely be to cut orders to ODMs such as Wingtech.
The report adds that most of the unsold inventory consists of mid-range Galaxy A devices. Demand for such phones has reduced, likely due to them aping their high-end counterparts by axing beloved features like the micro SD card slot and 3.5 mm audio jack. Our in-depth review of the Galaxy A53 found it to be lacking, and that sentiment is undoubtedly shared by many users. Furthermore, Samsung's decision to ape Xiaomi's rapid launch cycle may also have a part to play in the unsold inventory.