Samsung’s cell phone sales plummeted. It is stated that 50 million smartphones are waiting in the company’s warehouses. Due to this rate, which corresponds to 18 percent of total production, Samsung has further cut the already reduced production.
South Korean smartphone manufacturer Samsung is one of the world’s best-selling phone brands.
Offering phones in many different segments, including entry, middle and top, Samsung is also the owner of last year’s best-selling model.
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According to allegations in the South Korea-based news site The Elec, the technology giant’s 2022 sales are even worse than expected.
It has been suggested that Samsung has about 50 million phones waiting in distributor stocks.
Considering that the company targets 270 million units within the scope of 2022 production plans, the number of stocks on hand is 18 percent.
ABOVE THE ACCEPTABLE LIMIT
Experts state that the number of stocks should be at most 10 percent for a healthy business model.
Samsung halved its phone production to 10 million units in May 2022. Despite this, it is stated that the company has a large number of gtelephones in its hands.
Last year, Samsung predicted 334 million phone production while planning for 2022. This number was later reduced to 270 million units.
The increase in cell phone prices due to inflation, Russia’s invasion of Ukraine keeping consumers away from spending money and the decrease in purchasing power due to the coronavirus epidemic are among the major threats to the smartphone market.
