50 million “Galaxy A” phones are stuck with Samsung Mobile, as it was unable to sell it even after it cut its production in half. Experts blame the stalemate economic situation that has led to a lack of demand for smartphones.
Since the beginning of the economic crisis, we have seen companies take precautions to reduce production so as not to find themselves on a mountain of phones and unsold products; As a result of the lack of demand for smart phones, especially with the semiconductor crisis . And if you do not imagine the scale of the crisis that the sector is going through, let me tell you that even Apple – which is known to achieve its expected sales every year – plans to reduce production of the upcoming iPhone 14 series by 20 million units less, according to reports.
But it is clear that the Korean giant Samsung did not expect this atrophy to last, especially in the middle class that is supposed to reap the highest percentage of sales, as a report appeared showing that the company had 50 million units stuck in the stock of distributors, which means that Samsung Mobile Company has not been able to sell these units to customers and is only stuck with distributors around the world.
According to reports, these unsold phones are in the Galaxy A category , which is supposed to be the company’s best-selling category; Since it is directed to the middle class, we are not talking here about the Galaxy S22 series of high price, but about phones at an economical price, this means that Samsung is in real danger and that its phones are not sold as required!
According to the information we received, Samsung planned to ship 270 million smartphones for the year 2022 (instead of 334 million phones, which was the original goal at the end of the last quarter of 2021), and among this number appeared a shortfall in sales of 50 million units – as we previously explained – , This means that 18% of the total shipments of smartphones expected to be sold from Samsung this year were not sold, under normal circumstances, this percentage does not exceed 10%
Experts believe that this decrease in sales is the result of the deteriorating economic situation globally – due to the war between Russia and Ukraine, and the rise in the prices of raw materials – especially to the audience that these phones are directed to, if you are trying to sell a phone at a reasonable price, the category that you will want to buy will be occupied More by trying to face the economic situation and secure her basic life resources, so buying a new phone will not be a top priority in the current situation.
On the other hand, we believe that fierce competition with other companies such as Xiaomi is one of the reasons for this atrophy in Samsung phone sales, which some may find unattractive deals in its category when compared to other devices.
Samsung continues to reduce the production quantity of its smartphones gradually, after it was making 20 million units of smartphones per month from January to February, it cut production in half (10 million units) in May. If this report is correct, it is expected that production will be reduced again, so is Samsung Mobile in real trouble?
Samsung Mobile Company.. It’s time to change plans after the disaster of 50 million phones
If Samsung Mobile Company continues at this rate, it will certainly suffer heavy losses, and therefore the bleeding must be stopped and alternative plans should be considered. Do not be surprised if you hear about stopping production of the “A series” and launching another series with more competitive specifications and a lower pricing category. It is also expected that Samsung is trying to sell these phones by offering them at huge discounts, perhaps in the next Black Friday, for example, and it will help reduce losses resulting from this huge number of unsold units!
The demand for smartphones is no longer the same as before due to the lack of enough changes
Smartphones have become usable for many years, unlike what they were in 2013, for example, where they came with modest hardware – or even design – that is constantly updated, giving consumers the impetus to renew their phones, I remember well when the first phones with a quad-core processor “HTC” were launched. Edge” and how we were excited to ditch dual processors and join the “age of speed.” So where are we with these updates now?
Let’s talk about the Galaxy A series for example as the topic of our article today, the Galaxy A53 5G comes with a design identical to last year’s version, and it differs from it only in raising the frame refresh rate to 120 Hz – instead of 90 – and changing the chip used to become Exynos 1280 instead of Snap Dragon 750G, Is It Worth Upgrading?
This was measured by all the other updates that are offered to previous phones, not only within the Samsung Mobile Company, but in all companies, and in my opinion it is one of the most important factors that led to this atrophy in the smart phone market – besides the worsening economic situation, of course – if the phone that I have is It’s fast and runs very smoothly, with good battery performance and support for Android updates, so what’s the main reason why I should consider upgrading?
