Millions of Smartphones are Not Sold from Xiaomi, Oppo, Honor, Vivo and Samsung

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Previously, in June 2022, a report showed that 18% of Samsung inventory, or 50 million smartphones, lying in its warehouse. At first glance, we especially talk about the middle class Galaxy A series devices. With competition, the situation is the same.

As reported by digitimes media, all retailers and producers are influenced by the same trend. According to them, Oppo, Vivo, Xiaomi and Honor will also be affected by the problem. Their distributor and retail partners sit over tens of millions of unselved smartphones. Every producer mentioned is said to have up to 30 million devices detained.

Recession continues in China and the Ukraine crisis

Various market studies have mentioned the economic slowdown which currently affects the smartphone market. Concerns spread around a prolonged recession in China and the Ukraine crisis.

The Chinese-Tolerance Approach to Covid-19's latest resurrection, with locking cities and even the whole region, has slowed its economy, in addition to causing chain reactions in the global economy because factories that are closed nationally and increased logistics costs.

Furthermore, the war between Russia and Ukraine caused the accumulation of shares that were originally aimed at the Eastern European market. The same phenomenon occurs in many other sectors, including graphics cards. This explains why it is now easier to find it at a reasonable price.

Finally, consumer confidence has contracted significantly recently due to the uncertainty of the global economy. In France, this situation will cause the loss of 2 GDP points during 2022-2024, with soaring inflation.

The prospect of the smartphone market recovery, though everything

However, the prospect of recovery of the smartphone market in the second half of this year is still valid. At the end of May, the Chinese government held a meeting to overcome large -scale economic stability. The government is expected to implement a more aggressive policy to encourage the economy in the second semester.

Smartphone makers have reduced their spare parts orders and their estimates of new devices produced lately. They also reduce their estimated sales for the rest of this year. Apple must also provide an estimate of the next volume of iPhone 14 production, which will no doubt lead to reducing orders for related components.

Source: Digitimes