Events such as the chip crisis, pandemic and the Ukraine-Russia war that broke out in recent years have negatively affected the smartphone market. Although it has started to recover now, it is still not at the desired level. In fact, it was in a continuous decline until 2021. Last year, growth was recorded for the first time in the sector after 5 years.
This situation deeply affected Samsung, one of the giants of the industry. In fact, according to a new report, the company is having difficulty selling smartphones. This causes stocks to swell as sales cannot be made.
Samsung stocks are full: Phone struggling to sell?
According to a report published last month by the market research company Canalys, Samsung is by far the most successful smartphone manufacturer in Europe with a 35 percent market share, despite a 9 percent decline year-on-year. However, according to the allegations, the company is unable to melt its stocks because it cannot sell at the desired levels.
Claims that Samsung is struggling to sell smartphones
According to TheElec’s report, Samsung currently has approximately 50 million smartphones in distributor stocks. In fact, a large part of the company’s stocks consists of the Galaxy A series, which has achieved significant sales success all over the world, including our country.
The report emphasized that Samsung aims to ship 270 million smartphones in 2022. Because, if the claimed numbers are correct, 18 percent of the company’s total target consists of devices in stock. It is also reported that this rate is considered normal up to 10 percent, but if it goes above that, it causes critical stock shortages.
The fact that there are more mid-segment devices such as the Galaxy A series in stock indicates that the demand for the company’s phones in this class is less than expected. Samsung produced 20 million smartphones between January and February 2022. However, due to the decrease in demand due to many reasons mentioned above, production decreased to 10 million in May. If stock problems continue, similar decisions may come in the near future.
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