Galaxy S21 sales fiasco causes Samsung suppliers to record profit losses

O Galaxy S21 has been a headache for the shareholders of Samsung. The model is one of the flagships with the worst sales performance in the South Korean manufacturer’s recent history and would be directly switched on to the loss recorded by the company’s suppliers.

The information is from the South Korean website The Elec, which claims to have had access to an internal Samsung report with market data from 20 suppliers of the manufacturer. The numbers show that at total sales reached KRW 2.53 trillion in the second quarter of 2021 and operating profit reached KRW 162.4 billion, with an average operating margin of 6.4%.

The data registered a slight increase compared to 2020. general sales retreated 13.1% it’s the operating profit fell 72% in the second half of this year compared to 2019.

Analysts attribute the drop to the economic effects caused by the new coronavirus pandemic with the continuous global chip shortage and the weak market performance of the Galaxy S21 line.

Combined shipments of the Galaxy S21 series reached 13.5 million units sold within the first six months of availability. already the Galaxy S20 arrived at 17 million and the Galaxy S10 The a staggering 25.5 million.

The forecast of South Korean analysts is that the situation of Samsung’s suppliers will not improve consistently in the second half of 2021, even with the launch of the Galaxy Z Fold 3 and Galaxy Z Flip 3, as they have a higher price and do not reach all audiences.

Hopes rest on the Galaxy S21 FE, which should be released later this year, but with medium expectations, as the price of the model may not attract many users at the time of its launch.

So, what path does Samsung need to take to boost profits? Leave your opinion in the comments below!

(Updated on August 24, 2021 at 6:22 am)