Samsung is again forced to make a radical decision for its phones due to COVID-19, the Korean company failing to meet the goals it initially set. Samsung had and has extremely big problems with the sales of mobile phones, especially with the GALAXY S20 series, so it decided to radically reduce orders for components dedicated to phones, this after it had already decided to reduce production for them.
Samsung reduced, on average, in April by 20% - 30% the orders for components, depending on the component, and for the whole year it is a reduction of up to 50% compared to the previous year. The discounts apply to components dedicated to all Samsung phone models, whether it's the cheap ones, the middle-class ones, or the expensive ones, it seems that there is no discrimination between what the Korean company is selling now.
Samsung: RADICAL decision for Phones due to COVID-19
Samsung would have registered a good evolution on the smartphone market in South Korea, but at the international level things are not as good, so initially it reduced production compared to Q1 2020, and now also component orders. Some of Samsung's partners say that this 50% reduction in components is like a "death sentence", and this is because it is about very large revenues that they no longer receive during this period.
“According to industry sources on the 26th, orders for smartphone parts from Samsung Electronics were found to have decreased this month. Although there is a difference between the parts, when combined, orders are down 20~30% from the previous month and up to 50%. A number of parts maker officials said: "All orders for low-to-low-price models as well as high-end models such as the Galaxy S series have declined." "A 50% reduction in orders is like a death sentence," said the company's representative.
Samsung produces over 300 million phones annually, and sells almost everything it produces, so we are talking about an extremely important decision when it comes to the substantial reduction of production. Samsung is the largest manufacturer of phones on the entire planet, and any kind of decision of this kind has a huge impact not only on the company, but also on other adjacent industries that rely on money from Koreans, so we are talking about a serious situation .
Samsung for now he has not publicly commented on all this information, but all his partners say in unison that it is about big discounts for component orders and phone production.
