The Samsung Galaxy S20 series is not fairing well in the global markets since its launch. The Korean home market also struggles with low sales.
The Coronavirus pandemic has forced people to lock themselves in their houses. Businesses that offer essential services enjoy an increase in consumer patronage. Stores like groceries, pharmacies, and fresh produce shops are some examples of these.
While some enjoy the effect of the lockdown, many other brands and stores are feeling the sour effect of people staying in their houses. The large markets affected by the lockdown are the retail stores. No one at this time would even think about buying new clothes or apparel.
Also, buying a new phone is not the top priority of most consumers during this COVID-19 pandemic. Indeed, the market is facing downtime in sales and profits. For one, Samsung is one of the several smartphone companies that are experiencing this significant decline in smartphone sales.
Samsung Galaxy S20 series performs poorly against Galaxy S10 series
In a report, Samsung is reportedly unhappy about the results of the Galaxy S20 series sales. The company had to call for a private meeting to prevent a fall out from its investors. Additionally, head executives had to call several securities firm to ask for protection plans for the business.
Samsung is set to release the official data on first-quarter sales of the company in April. Earlier leaks show that the Samsung Galaxy S20 has only sold 80% of the Galaxy S10 series for the same selling period.
The 80% is substantially different from the reports made by the Korean the telecommunications company. According to the reports, the entire Samsung Galaxy S20 series is selling only at 60% of the previous’ generations sales.
5G speed lets you download your favorite Netflix shows and movies in a flash. With #GalaxyS20 Series, watch more of what you love.
— Samsung Mobile (@SamsungMobile) March 25, 2020
5G could be Samsung’s savior for 2020
The 5G movement in many countries has only started. It is slowly becoming ubiquitous to newly released mid-range and flagship phones. In line with that, Samsung sees the 5G trend to be the company’s silver lining in the mid of this pandemic.
As soon as the situation goes back to normal, the company believes that its sales will pick up. Before that comes to fruition, the company must first get over this period of the lockdown. After which, they will have to devise a strategy that will get people to spend their money on new phones.
Cut in the smartphone production
The company reportedly cut down its smartphone production to just ten million units. This is a far cry from its previous monthly records of 25 million units produced.
The cut in production can only mean two things. First, the company still has a huge surplus from the first quarter. Second, the company does not see any reason to increase inventory on a negative sales year.
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