Well, after Samsung demonstrated some immunity to the COVID-19 by successfully launching the new Galaxy S20 without any unexpected delay and enough stock to supply the global market, the pandemic seems to have finally knocked on the door of the South Korean giant.
After all, it is nothing new to anyone that Coronavirus is having a brutal impact on the smartphone industry. Consumers are closed at home, many of them earning less or nothing. (Since there are several companies with no idea how they are going to pay wages, with or without lay-off). So it is now Samsung's turn to also be forced to make some complicated decisions, thanks to the drop in demand.
Samsung cut production by 60% during April
Therefore, according to the latest information, Samsung cut April production by about 60%. Thus, taking into account that the global giant produces about 300 million smartphones every year. We have a monthly average of 25 million units, which of course means that Samsung will produce less than 15 million units this month.
However, this number may be wrong! Since in a very curious way, Samsung produces most of its devices for the first half of the year in January, February and March. Leaving April as an extra production month, in which the quantity usually varies according to the demand in the market. In other words, April is already the month with the least production by the South Korean giant, yet in 2020 we reached a new minimum record of units produced.
One thing is certain, whether they like the new Galaxy S20 or not, most consumers now have little desire to invest a large amount of money in a new smartphone. So it makes sense for manufacturers to save resources and labor, if they are simply not selling the stock they have on shelves and warehouses.
Meanwhile, rivals Apple and Huawei are ready to resume normal production, due to the fact that China is slowly returning to normal pre-COVID levels. Samsung should do the same in May, in order to prepare for the launch of the new Note 20, which are expected to hit the market in August.
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Since I was very young I became interested in computers and technology in general, I had my first PC at 10 and at 15 I built my first tower, since then I never stopped. Whatever technology is, I'm in the front row to find out more.