Samsung asks supply chain to suspend supply

According to Taiwan Economic Daily, affected by the epidemic, Samsung Galaxy S20 series sales are poor and inventory is piling up. The supply chain has been notified to suspend supply recently. The focus is currently on digesting inventory, which is not conducive to supply chain manufacturers such as Largan, Suning, Chaozhong, Taishuo, and GIS-KY.

Due to the outbreak of COVID-19 at the beginning of this year, South Korea is also one of the hardest-hit areas in Asia. Although Samsung has nearly 80% of the market share in the local market, its sales are still not as good as expected. After the S20 series was launched, its local sales were only 60% of the previous generation S10 series. The European and American markets were also affected by the COVID-19 pandemic, which affected the willingness to buy mobile phones. In addition, Apple launched the cheap iPhone SE. Attracted by the price, some consumers switched to buy the new iPhone SE, which made the sales of the S20 series even worse.

Due to the impact of the epidemic, the sales of the S20 series are not good. It has been reported that the supply chain has cut orders. As the inventory is too high and cannot be liquidated, there are now reports that the supply chain has suspended supply.

It is reported that Largan is responsible for providing the S20 lens module, while Suntech, Chaozhong, and Taishuo provide the heat dissipation module, and GIS-KY provides the under-screen fingerprint recognition module. Samsung began to require the supply chain to supply S20 series components in December last year, and continued to supply until March this year, but since April, Samsung's Indian production base was shut down due to the epidemic and began to stop supplying. Although relevant production capacity in India has resumed operation recently, Samsung has not resumed placing orders. It may be that the inventory is too high. Samsung prioritizes destocking as a strategy, so it no longer requires the supply chain to supply.