Samsung will reduce production of TVs and other home appliances

The downward trend in the global economy has led to lower demand for products in most industries, and even very large multinational corporations like Samsung will face the same problem. It was previously reported that Samsung’s smartphone inventory is nearly 50 million units, of which the mid-range Galaxy A series accounts for a large proportion.

Samsung’s goal for smartphones this year is to ship about 270 million units, and 50 million accounts for about 18%. Normally, it needs to be reduced by half, and it is healthy to control it by 10%. Samsung produced an average of 20 million smartphones a month from January to February this year but dropped to 10 million in May. Samsung is rumored to be slashing smartphone production, and Samsung’s component orders from various suppliers fell by 30% to 70% between April and May this year.

According to Sammobile, as the global economic situation gets tougher, consumer demand will continue to slow, and geopolitical uncertainty raises the stakes, forcing Samsung to make adjustments. Samsung is slashing orders for TVs and other home appliances after cutting orders for 30 million smartphones in 2022.

Market research shows that Samsung’s inventory turnover time in the second quarter of this year averaged 94 days, an increase of two weeks over last year. The increase in inventory turnover time indicates that Samsung’s cost burden has also increased. Correspondingly, retail data shows that Samsung products are selling at a much slower pace than in the past. Before the global economy improves, Samsung will not rule out continuing to cut orders.