Samsung has up to 50 million smartphones in its warehouses that the company cannot sell

Samsung is at risk of not fulfilling the plan for sales of smartphones in 2022. More than 18% of models are in warehouses.

What is known

The South Korean company has planned to sell approximately 270 million devices by 2022. Typically, manufacturers have up to 10% of the total volume in warehouses, but Samsung 18% of smartphones remain at once (almost 50 million pieces).

There are several reasons for this. First, the series Galaxy A does not feel well in the fight against competitors in China, where models sell well Xiaomi, OPPO and vivo. It accounts for most of the 50 million unsold devices. Secondly, the war between Russia and Ukraine has hit supplies in Europe. Thirdly, Samsung stopped officially selling smartphones in Russia.

From January to April inclusive, the company sold an average of 20 million smartphones per month. However, in May, the volume decreased by half. Also Samsung had to reduce the purchase of components immediately by 70% in May compared to April.

Source: GSM Arena