Samsung and Huawei are two of the biggest smartphone manufacturers who manage to provide products for all types of consumers and in almost all markets around the world. A new report shows that the two companies might be lowering their phone shipment targets for the third quarter of 2016.
The reason is linked to the fact that global demand for high-end devices has gone down. The report comes fromand details how Samsung and Huawei have both urged suppliers to reduce their inventories of smartphone parts and components.
The report also shows that Samsung and Huawei have reduced their shipment targets by 10% and 20%, respectively, for the whole third quarter.
It’s unsettling news, considering that Samsung launched its flagship series, the Galaxy S7 and, at the start of the year and is expected to unveil the highly anticipated Galaxy Note 7 on August 2.
Huawei significantly reduces targeted smartphone shipments for this year
In fact, the report goes on to say that Samsung originally intended to ship 28-30 million units of Galaxy S7 smartphones, during the third quarter alone. This means that, apparently, sales of the company’s flagship are down. Huawei targeted shipments of 14-15 million Huawei P9 devices during the same period of time.
Huawei is believed to have reduced its overall smartphone shipment target to 120 million from 140 million set for the whole 2016 year. Since the company lowered its targets, it means that it projected smartphone shipments to grow by just 13% in 2016, compared to the initial estimation of 30%. Even so, Huawei could still surpass last year’s total shipment of 108 million handsets, since it relies heavily on sales for the flagship.
The report could also mean that Samsung and Huawei might be moving away from high-end smartphones and rather focus their attention on more budget-friendly products.