14 DAY TRIAL // A new report reveals that Samsung was way too optimistic last year when it decided on its production targets for 2022, so right now, the company has a massive inventory of unsold units at a global level.
More specifically, The Elec claims that Samsung’s unsold stock includes no more, no less than 50 million smartphones, out of which the Galaxy A accounts for most units.
In case you’re wondering how come Samsung got the numbers so wrong, it’s pretty simple actually. The South Koreans typically try to create a stock that includes approximately 10 percent of its annual sales target.
People familiar with the matter originally said the company wanted to sell approximately 300 million phones this year, so the 10 percent would basically mean Samsung was aiming for a 30-million-unit global stock.
New Samsung phones launching in August
However, the 50 million devices that are currently waiting to find a new owner prove the company got the numbers wrong, especially as the world is battling new challenges, including the geopolitical tensions in Europe.
Samsung, however, is already preparing for the debut of new models, with August very likely to witness the introduction of the company’s new foldable device lineup. Needless to say, Samsung’s sales could accelerate in the fall when the new Galaxy Z models become available, but on the other hand, the South Koreans need to find a way to get rid of the unsold Galaxy A stock.
This is obviously possible with a more aggressive marketing push, so it’ll be interesting to see how the company plans to deal with the oversupply in the short term.
Needless to say, the South Korean phone maker hasn’t commented on the report, so we should just take the numbers with a healthy pinch of salt for the time being.