According to a new report outside its home in Korea, Samsung has a stock issue. And it’s that it has huge amounts of phones in stock – over 50 million, in fact. That staggering stock has added to the stocks of its distributors. These are phones that are just sitting there waiting to be bought, but apparently not enough people want them.
The A-series of mid-range devices supposedly takes up a huge chunk of this locked inventory, presumably because they’re not attractive enough to fly off the shelves.
Samsung aims to ship around 270 million smartphones this year, and 50 million represents 18%. The “healthy” stock numbers would be 10% or less, hence why the sources in this report say there is a desirability problem for these accumulated devices.
Samsung produced around 20 million units per month earlier this year, but in May they dropped to around 10 million. This could be a reaction to having too many units locked in inventory and seeing low demand. Lower demand also prompted Samsung to reduce supplier component orders by 30% to 70% from April to May.
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