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Last updated: July 1st, 2022 at 16:45 UTC+02:00
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Market watchers expected Samsung to procure around 54 million LCD panels for its smart TV division this year. However, due to lower-than-forecast TV shipments, Samsung cut its annual target to ~40 million TVs during the H2 strategic meeting. Analysts now estimate that Samsung will acquire 44 million LCD panels throughout 2022.
One reason why Samsung is temporarily halting LCD orders is that TV demand plummeted in the first half of 2022, especially in Europe and North America. However, this isn't the only reason.
Samsung reportedly ordered 10% more TV panels in 2021 compared to the year before as a way to create a safety buffer and solve its logistics problems amid the global shortage. But now, industry officials (via The Elec) estimate that Samsung has enough inventory for at least 16 weeks worth of TV manufacturing, transportation, warehousing, and distribution.
In other words, considering lower-than-expected TV sales in H1 2022 and Samsung's increased panel orders in 2021, the Korean tech giant had to temporarily halt LCD panel orders from suppliers: BOE, China Star, HKC, AUO, and Innolux. Samsung will stop taking in new LCD panel orders until the end of July at the earliest.
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Mihai is a blogger and column writer at SamMobile. His first Samsung phone was an A800 which took a lot of beating, and a part of him still misses the novelty of the clamshell design. In his free time, he enjoys watching shows, documentaries, and stand-up comedy; listening to music, taking walks, and occasionally playing old(er) video games.
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