After phones, South Korean tech giant Samsung is now reportedly reducing the production of its TVs and home appliances.
According to Sam Mobile, it is having to make these adjustments due to slow consumer demand because of the tough global economic conditions.
The uncertainty due to the Russia and Ukraine conflict is also putting pressure on demand.
A market research also shows that inventory turn over for Samsung took 94 days on average in the second quarter of this year. That’s about two weeks more than last year, the report said.
The inventory turnover time is the number of days that it takes for the inventory that’s in stock to be sold to customers. The cost burden of the manufacturer is lowered if the inventory turnover is shorter. Samsung’s figures show that these products are selling much slower than before.
A recent report mentioned that Samsung has 50 million unsold smartphones stuck with distributors. That’s about 18 per cent of its expected total smartphone shipments for 2022.
The company has reportedly cut its phone production for 2022 by 30 million units already.