Thu. Aug 18th, 2022
Tens of millions of unsold smartphones from Xiaomi, Oppo, Honor, Vivo and Samsung

The crisis is hitting smartphone makers hard, with tens of millions of unsold smartphones amassing.

The Galaxy A53 and A33 // Source: Frandroid – Arnaud Gelineau

Previously, in June 2022, a report suggested that 18% of Samsung’s inventory, or 50 million smartphones, was in its warehouses. At first glance, we are mainly talking about the mid-range Galaxy A series devices. With competition, the observation is the same.

As DigiTimes reports, all retailers and manufacturers are affected by the same trend. According to them, Oppo, Vivo, Xiaomi and Honor would also be affected by the problem. Therefore, its distributors and retail partners have tens of millions of unsold smartphones. Each manufacturer mentioned is said to have up to 30 million devices on standby.

The prolonged recession in China and the Ukraine crisis

The various market studies have already mentioned the economic slowdown currently affecting the smartphone market. Concerns are spreading about the prolonged recession in China and the crisis in Ukraine.

China’s zero-tolerance approach to the latest resurgence of COVID-19, with closures of cities and even entire regions, has slowed down its economy, as well as causing a chain reaction in the global economy due to the closure of factories around the world. country and increased logistics costs.

In addition, the war between Russia and Ukraine caused the accumulation of stocks that were originally destined for the Eastern European market. The phenomenon is the same in many other sectors, including graphics cards. This explains why it is now much easier to find them at reasonable prices.

Finally, consumer confidence has contracted significantly recently due to global economic uncertainty. In France, this situation should lead to a loss of 2 points of GDP during 2022-2024, with runaway inflation.

Prospects for recovery despite everything

However, the prospects for a recovery in the smartphone market in the second half of the year remain valid. In late May, the Chinese government held a meeting on large-scale economic stability countermeasures. The government should implement more aggressive policies to stimulate the economy in the second half.

Smartphone makers have been lowering their part orders and their estimate of new devices being produced lately. They also lowered their sales forecast for the rest of the year. Apple should also provide its estimates for the production volumes of the upcoming iPhone 14, which will no doubt lead to reduced orders for the associated components.

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This article was translated from this source written by


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