Tens of millions of unsold smartphones from Xiaomi, Oppo, Honor, Vivo and Samsung | TechBuzz

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The crisis is hitting smartphone manufacturers hard, as they accumulate tens of millions of unsold smartphones.

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

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

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As the DigiTimes media 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. Their distributors and retail partners are thus sitting on tens of millions of unsold smartphones. Each manufacturer mentioned is said to have up to 30 million devices on hold.

The prolonged recession in China and the Ukrainian crisis

The various market studies have already mentioned the economic slowdown currently affecting the smartphone market. Worries are spreading around the protracted recession in China and the Ukrainian crisis.

China’s zero-tolerance approach to the latest resurgence of Covid-19, with lockdowns of cities and even entire regions, has slowed its economy, in addition to causing a chain reaction in the global economy due to the closed factories nationwide and rising logistics costs.

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Furthermore, the war between Russia and Ukraine led to the accumulation of stocks that were originally intended 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 over 2022-2024, with galloping inflation.

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Prospects for recovery despite everything

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

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Smartphone makers have been reducing their parts 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 of the production volumes of the next iPhone 14, which will undoubtedly lead to a reduction in orders for the associated components.

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I am admin of techbuzz.asia blog & I provide tech-related news. As a part of my hobby, I make content related to technology and gadgets reviews too. I love to be a content creator apart from it, I am a full-time employee in an MNC company and manage blogs systematically. You can mail me at [email protected]

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