Samsung apparently has a huge stockpile of 50 million devices due to low demand

Samsung
Tamsin Rodriguez22 June 2022Last Update : 6 days ago
Samsung apparently has a huge stockpile of 50 million devices due to low demand

According to a new report from their home in Korea, Samsung has a stock issue. And it is that it has huge amounts of phones in stock – in fact over 50 million. The dizzying stock has settled in the warehouses of its distributors. These are phones that are just waiting to be bought – but apparently not many people want them.

The A-Series of mid-range devices reportedly fill a large portion of this locked-in inventory, presumably because they are not appealing enough to fly off the shelves.

Samsung aims to ship around 270 million smartphones this year, and 50 million is 18% of that. “Healthy” inventory figures would be at or below 10%, which is why the sources of this report claim that there is a desirability issue for these stored devices.

Samsung made about 20 million devices a month early this year, but it dropped to about 10 million in May. This may be a reaction to the fact that too many devices are stuck in the warehouse and see low demand. The lower demand has also led Samsung to reduce its component orders from suppliers by 30% to 70% from April to May.

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