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Samsung halts component orders amid fears of oversupply and global inflation

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Last updated: June 16th, 2022 at 16:40 UTC+02:00

Samsung Electronics is reportedly reevaluating supply and demand amid concerns over global inflation levels. The company has temporarily suspended orders for several components that are required to manufacture various consumer electronics.

Samsung appears to have sent a notice to multiple suppliers asking them to delay shipments or reduce part orders due to bloated inventories. (via IT Home)

Sources say that Samsung is asking for fewer chips and other components needed for manufacturing products in several device categories, including smartphones, TVs, and home appliances.

The smartphone market has been hit by recent world events and rising inflation levels. Samsung is maintaining the lead over other OEMs, but overall shipments are in decline. The European smartphone market, for example, reached a new record low in Q1 2022.

In other news, Samsung appears to have high hopes for its upcoming foldable smartphones, which are anything but affordable. The company reportedly aims to ship 15 million Galaxy Z Flip 4 and Z Fold 4 units combined, which would be twice as many shipments as it predicted for the Z Flip 3 and Fold 3.

As for home appliances, Samsung is pushing its Bespoke series in more markets. But, again, it sounds like the company may have overestimated overall demand and has a surplus of components it wants to get rid of first before taking in more orders. We’ll have to wait and see how this translates to the company’s bottom line over the next few months.

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