A new report claims Samsung has more than 50 million unsold phones in stock. These phones are still at Samsung distributors around the world.
Samsung is estimated to have shipped 270 million smartphones by 2022. Thus this 50 million unsold units equals about 18% of Samsung's total unit shipments.
This figure is also considered high and worrying because usually the stock of unsold Samsung phones is usually only about 10% of total shipments.
This shows that consumer demand for Samsung mobile phones has fallen due to the emergence of a global economic recession.
Launching from Sammobile, Friday (24/6/2022) most of the cellphones that have not been sold are the Galaxy A series models of middle-class smartphones, on the other hand, flagship phones whose prices are above the average sell better.
The low demand for Samsung's low-cost smartphones shows that this middle class consumer is the most impactful part of the global economy.
It doesn't matter how cheap the phone is it won't be a priority for them to buy a new phone.
In the period from January to February 2022, Samsung is reported to have produced 20 million smartphones per month. In May, Samsung halved production to just 10 million units.
It is even reported that Samsung has reportedly decided to cut production of its smartphones by 30 million units this year.