The Covid-19 outbreak has taken a toll on global smartphone demand and manufacturers like Samsung are calibrating the anticipated reduction in sales and curtailing production during the current quarter.
The Korean phone maker had witnessed less than robust demand for its Galaxy S20 range of smartphones that launched in March as the coronavirus pandemic resulted in lockdowns and fears of job losses. A report from Wave7 Research suggested an overall decline of around 13% in global sales during 2020.
There is a reason to smile though
Nonetheless, there is a silver lining for the Korean tech giant. Sales projections for the Samsung Galaxy S20 Ultra are beating market estimates with sales expected to reach 6 million units during the year as against the anticipated 3.5 to 5.25 million units.
Following the pandemic, the market had slashed sales projections for the S20 series by 40% with sales of 20 million handsets during 2020. While the Galaxy S20 was expected to sell 6 million units, the S20+ was pitched at 8 million and the S20 Ultra at 3.5-5.25 million units.
Earlier in April, the South Korean tech giant had stated that its operating profits during the three months ended March would touch $5.23 billion, up about 2.7% over the profits it posted in the same period a year earlier.
However, with the spread of Covid-19 and the resultant economic slowdown the immediate future appears bleak for Samsung and other smartphone manufacturing companies across the world.