Home of IT, June 27 - The global economic downturn has led to a drop in demand for products in most industries, according to SamMobile. The move follows reports that Samsung is slashing its smartphone production.
Now other parts of Samsung are under similar pressure. Samsung is reducing its production orders for smart TVS and home appliances, according to a new report.
Reports from South Korea, citing industry officials, say Samsung is cutting its production of smart TVS and other home appliances. The changes have been forced by a slowdown in consumer demand amid tough global economic conditions. Uncertainty over the conflict in Russia and Ukraine also weighed on demand.
Market research also showed that Samsung's inventory turnaround time in Q2 was 94 days on average. That's two weeks more than last year. Inventory turnaround time is the number of days it takes for products in inventory to be sold to customers. If the inventory turnaround time is shorter, the manufacturer's cost burden is reduced. Those products are selling at a much slower pace than before, according to Samsung.
Samsung's smartphone business has seen a similar trend. A recent report noted that Samsung has 50 million unsold smartphones sitting in dealerships. That represents about 18 percent of its projected total Samsung smartphone shipments in 2022. Samsung has reportedly cut its 2022 handset production by 30 million units.