After seeing unsatisfactory Galaxy S20 sales, Samsung has now reduced the production scale of the Galaxy Note20

Tram Ho

Earlier this year, Samsung launched its flagship smartphone model, the Galaxy S20 series. But it did not meet the company’s expectations for sales and the COVID-19 pandemic exacerbated the situation.

A report from market research firm Omdia in May claimed that Samsung shipped just 8.2 million Galaxy S20, S20 Plus and S20 Ultra smartphones in the first quarter of the year. By comparison, the company sold 10.3 million units of the S10 and S10 + in Q1 2019, and the addition of the S10e to the line brought the total to 12.5 million.

Sau khi chứng kiến doanh số Galaxy S20 không đạt kỳ vọng, giờ Samsung giảm cả quy mô sản xuất Galaxy Note20 - Ảnh 1.

S20 sales are not expected to meet expectations.

And at a time when global shipments were down 13% year-on-year, the Galaxy S20 series reported a 35% drop from its predecessors. The report also revealed that Samsung’s most popular flagship model, the Galaxy S20 Plus, sold 3.5 million units, down from the 5.2 million units of the previous generation’s most popular model – the Galaxy S10.

But things don’t stop there. Recently, the Korean giant launched the Galaxy Note20 series. And since the Galaxy S20 is not performing well, the company and investors have high expectations for the new Galaxy Note20 series, in the hope it will make up for the weak sales of the S20 series.

Sau khi chứng kiến doanh số Galaxy S20 không đạt kỳ vọng, giờ Samsung giảm cả quy mô sản xuất Galaxy Note20 - Ảnh 2.

And the early production of the S21 shows that the Note20 wasn’t too successful either.

However, a new report from South Korea published by TheLec has just stated that Samsung has reduced the scale of production of its Galaxy Note20 series smartphones, suggesting that its sales are not meeting the company’s expectations either.

The report claims that the company aims to produce 900,000 Note20 units by October, but to produce only 600,000 units, which is only 70% of the original plan. It also adds that the production ratio between Galaxy Note20 and Galaxy Note20 Ultra is about 1: 2 and the production rate drop of Note20 is worse than that of Note20 Ultra.

The report also adds that the company is currently preparing to begin production of the next-generation Galaxy S21 series smartphones from next month. And for the first shipment, the company is aiming to produce 2 million units.

Samsung recently released its financial statements for the third quarter, in which smartphone sales increased 50% q-o-q. But the foundation for that belongs to more low-end and mid-range products than on high-end models.

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Source : Genk