The global economy is struggling, and consumer spending is falling, causing yet another slump in the smartphone industry. Sales for the first half of the year were lower than in 2021, and it seems that businesses do not anticipate much recovery for the second half either. The largest smartphone manufacturer in the world, Samsung, has cut its sales forecast twice in the last three months.
Samsung is expected to sell only approximately 260 million smartphones this year, according to the Korean media. The company had initially aimed to produce 334 million smartphones in 2022, with a 300 million unit sales target.
However, it lowered the goal to 270 million in May, a 10% reduction. Around this time, the supply chains began to be impacted by the conflict between Russia and Ukraine and the coronavirus lockdowns in China. According to reports, Samsung’s wholesalers and retail outlets had an unsold stockpile of roughly 50 million cellphones. That’s a lot more stuff than is typically kept on hand.
Advertisement This suggested that sales were slowing down. Even while the Korean powerhouse still dominates the industry, a recession in the world economy is having an impact on its sales. Samsung has now reduced its shipping target by an additional ten million, with recent months appearing to show no progress. Over 270 million cellphones were sold by the business in 2017. Thus, it is looking at a sales volume below that of 2021.
Well, if things get worse, it might even fall below the level of 2020, when it sold 250 million cellphones as the globe struggled with a pandemic of the coronavirus and a rare health crisis. Samsung frequently exceeded the 300 million milestone prior to the epidemic. Today, though, it looks like a far-off reality.
SAMSUNG IS STILL EXCITED ABOUT FOLDABLES Samsung’s fourth-generation foldables, the Galaxy Z Fold 4 and the Galaxy Z Flip 4, were just released. To give these unique smartphones more time on the market, the firm virtually terminated its beloved Galaxy Note lineup. It anticipates that sales of the most recent models will surpass those of the Note series.
Advertisement Foldables don’t, however, drive volume. They remain specialized gadgets. It is not anticipated that the Galaxy Z Fold 4 and Galaxy Z Flip 4 will ship more than 15 million units together this year. That’s assuming they are untouched by all the issues the smartphone industry is experiencing. The low-cost Galaxy A and Galaxy M series devices are what primarily drive Samsung’s sales. It will now be interesting to watch if these gadgets help the Korean giant hit its updated 2022 smartphone sales goal.