After a scenario that seemed hopeful with the end of the COVID-19 pandemic, the smartphone industry is now starting to prepare for yet another challenge as fears of a possible recession mount. This has already caused a number of problems for some manufacturers, such as Samsungwhich is already million smartphones in stock and forced to cut production.

According to the information received by the portal Elecby usingSamMobile, the South Korean giant is already starting to have problems because of this. The portal indicates that she 50 million smartphones stuck in warehouses distributors who failed to sell to customers.

This year Samsung intends to ship 270 million smartphones, with 50 million units stopped accounting for about 18% of that total. This scenario is of concern to the company, as the stock of unsold models in a typical year is 10% of total shipments, and this year it could double.

Credits: Samsung Disclosure

The main culprits for this are the company’s non-top models, which, because they are more expensive, can be replaced with other models. But, apparently, the blame for the company’s high reserves lies with Galaxy Awhich accounts for a large number of unsold models.

As indicated SamMobile, this is a very worrying sign of the global economic situation. The portal points out that low sales of entry-level smartphones mean that consumers must choose how best to spend their moneywhile new smartphones are not a priority.

OUR Samsung 2022 began with around 20 million smartphones a month in January and February, but the company cut production in half after that. This action by the manufacturer may have been a response to a large number of unsold devices. can further reduce its production. in the coming months to keep your inventory from getting out of control.

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Source: Elek, SamMobile