Samsung nearly 50M units of smartphones in distributor stock

According to TheElec, Samsung distributors have a smartphone inventory of up to 50 million units, and the source said that a large part of them are mid-range Galaxy A series phones.

The report quoted sources as saying that Samsung’s goal this year is to ship about 270 million smartphones, 50 million of which account for 18%, which is not very healthy. The relatively healthy figure is around 10%, and as high as 18 % of the inventory shows that Samsung is suffering from sluggish smartphone demand.

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According to reports, in January and February of this year, Samsung had produced about 20 million smartphones per month. But the company’s smartphone production slipped to 10 million in May, likely due to excess inventory and low demand.

The report also said that in the fourth quarter of last year, Samsung had set an ambitious annual production target of about 334 million units for 2022. This means that in terms of shipments, the target will be around 300 million units. But demand for smartphones this year was lower than expected, so Samsung slashed component orders from its suppliers by 30% to 70% in April and May.

Moreover, Nikkei reported earlier this month that Samsung temporarily stopped new purchase orders and asked multiple suppliers to delay or reduce component shipments for several weeks due to concerns about high inventories and global inflation.