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Samsung’s April Smartphone Production to Drop by 50% Y/Y
April 19, 2020
Samsung’s smartphone production is poised to drop by 60% this month due to COVID-19. The company, which typically manufactures 25 million handsets in April, will see that figure drop down to around 10 million units according to a report from The Elec. The resulting sales drop-off will undoubtedly have a huge impact on the company’s bottom line. Samsung three weeks ago shut down a number of its smartphone factories in Slovakia, South Korea, Brazil, and India in order to comply with government shutdown directives designed to stop the coronavirus from spreading. Additionally, with demand for new smartphones currently lower than it’s been in quite some time, there’s simply no point to keep production running at full tilt when the bulk of new phones will likely end up sitting on store shelves for who knows how long. “There is still quite a bit of inventory left over from March due to the coronavirus,” a source familiar with Samsung’s plans told The Elec, “and plants in India and Brazil have been shut down as well. Logistics alone, it doesn’t make sense to churn out more than necessary.” Production may fully resume sometime next month once workers are allowed to return to factories in Brazil and India. That, of course, may be an optimistic timeline given that it’s taken longer to contain the spread of the coronavirus than many anticipated. In India, for example, a government-imposed lockdown that was set to expire this week was recently extended to early May.
Samsung is not alone as smartphone manufacturers across the board will see a huge decline in sales this year. Apple saw its iPhone sales in China absolutely plummet in February as it sold an estimated 500,000 units. Meanwhile, overall smartphone shipments in China in March fell by 20% drop compared to the previous year.
COVID-19 is hitting the smartphone market hard, with components suppliers disclosing that orders from Huawei and Samsung for their high-end 5G devices have been weak. But chip vendors believe that demand for 5G smartphone solutions is recovering in China, and they are stepping up production for sub-6GHz offerings . For Apple, which may launch its 5G iPhone later than expected due to the virus, says its partners, TSMC and ASE Technology are still ready for backend mass production as originally scheduled for the 5G iPhone's mmWave AiP modules. Shipments of 5G-enabled smartphone models from Huawei and Samsung Electronics reportedly have met with headwinds, with supply chain sources indicating that component orders for these high-end models have lost momentum in the wake of the COVID-19. China's domestic 5G smartphone market has started recovering as chipmakers are stepping up production for sub-6GHz solutions, but 5G iPhone mmWave AiP production schedule hinges on Apple strategy:
Samsung’s April Smartphone Production to Drop by 50% Y/Y
April 19, 2020
Samsung’s smartphone production is poised to drop by 60% this month due to COVID-19. The company, which typically manufactures 25 million handsets in April, will see that figure drop down to around 10 million units according to a report from The Elec. The resulting sales drop-off will undoubtedly have a huge impact on the company’s bottom line. Samsung three weeks ago shut down a number of its smartphone factories in Slovakia, South Korea, Brazil, and India in order to comply with government shutdown directives designed to stop the coronavirus from spreading. Additionally, with demand for new smartphones currently lower than it’s been in quite some time, there’s simply no point to keep production running at full tilt when the bulk of new phones will likely end up sitting on store shelves for who knows how long. “There is still quite a bit of inventory left over from March due to the coronavirus,” a source familiar with Samsung’s plans told The Elec, “and plants in India and Brazil have been shut down as well. Logistics alone, it doesn’t make sense to churn out more than necessary.” Production may fully resume sometime next month once workers are allowed to return to factories in Brazil and India. That, of course, may be an optimistic timeline given that it’s taken longer to contain the spread of the coronavirus than many anticipated. In India, for example, a government-imposed lockdown that was set to expire this week was recently extended to early May.
Samsung is not alone as smartphone manufacturers across the board will see a huge decline in sales this year. Apple saw its iPhone sales in China absolutely plummet in February as it sold an estimated 500,000 units. Meanwhile, overall smartphone shipments in China in March fell by 20% drop compared to the previous year.
COVID-19 is hitting the smartphone market hard, with components suppliers disclosing that orders from Huawei and Samsung for their high-end 5G devices have been weak. But chip vendors believe that demand for 5G smartphone solutions is recovering in China, and they are stepping up production for sub-6GHz offerings . For Apple, which may launch its 5G iPhone later than expected due to the virus, says its partners, TSMC and ASE Technology are still ready for backend mass production as originally scheduled for the 5G iPhone's mmWave AiP modules. Shipments of 5G-enabled smartphone models from Huawei and Samsung Electronics reportedly have met with headwinds, with supply chain sources indicating that component orders for these high-end models have lost momentum in the wake of the COVID-19. China's domestic 5G smartphone market has started recovering as chipmakers are stepping up production for sub-6GHz solutions, but 5G iPhone mmWave AiP production schedule hinges on Apple strategy:
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