Samsung and Huawei lower their expectations
Samsung Electronics and Huawei are lowing their shipment targets for the third quarter due to slacking demand for high-end smartphones globally.
Digitimes says that Samsung and Huawei both reportedly have informed downstream suppliers to reduce their inventories of parts and components prepared for the third quarter as the two vendors have lowered their shipment targets for the quarter by 10-20 percent.
Samsung hand been telling the world that it would flog 28-30 million units of its Galaxy S7 for the third quarter, while Huawei hoped that it would sell 14-15 million Huawei P9 devices during the same period.
Huawei has also lowered its smartphone shipment target for 2016 to 120 million units from 140 million.
The reduced shipment target means that Huawei now expects its smartphone shipments to grow only 13 per cent on year in 2016 compared to a 30 per cent growth it estimated previously, said the sources. Huawei shipped 108 million smartphones in 2015.
What is weird is that both outfits had been reporting good sales of their flagships, but it turns out that overall sales of high-end models were lower than expected. Many had expected high end phones to net a tidy profit while the lower end of the market tanked.
The figures relate only to these two companies. It is not clear how badly we can expect Apple to do this year. Its iPhone 7 has already been written off because it offers no new technology. Meanwhile its Chinese market is expected to contract more.
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