Due to the shrinking of the consumer electronics market in recent months, many manufacturers of mobile phones, TV, and other businesses have been affected to varying degrees, and they have stocked up a lot of products. In order to clear inventory, manufacturers often notify the supply chain to suspend purchases.
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According to the Taiwan Economic Daily report, in order to reduce the inventory of TVs and mobile phones, Samsung announced in mid-June that it notified the supply chain to suspend the purchase of goods until the end of July. Later, it was reported that because the inventory reduction rate was not as fast as expected, Samsung will suspend the delivery time for an additional month, and some products will not even be available until the end of this year.
Moreover, citing Samsung’s supply chain news, after Samsung’s two months of destocking, the TV business has now taken the lead in achieving results. The inventory cycle, which was originally as high as 16 weeks, has now been reduced to around 8 weeks, gradually moving closer to a healthy 6-week inventory cycle. Among them, the inventory of some high-end models of TVs has been greatly reduced, and they have gradually returned to normal supply.
According to reports, industry insiders said that Samsung currently only has achieved results in destocking its TV business, and its mobile phone is still in poor condition and has a large inventory. Furthermore, the global TV market share of Samsung and LG is gradually declining. In the first half of this year, Samsung’s market share was 31.6%, down 1.1 percentage points from the same period a year ago.
