Samsung is increasing volume production in its smartphone division beyond the forecast of its own Mobile eXperience (MX) department that is in charge of the development and production of the Galaxy handsets.
According to The Elec’s sources in Samsung’s camera and other component suppliers, they have been tasked with delivering parts for close to 50 million handsets near the end of the quarter.
The increase comes on the heels of a whopping 22% bump in orders in the first quarter, compared to Samsung’s forecasts, for a total of a 17% increase in potential sales for the company in the first half of the year.
The good times for Samsung’s phone division are apparently due to the enticing proposition of AI-driven features on the Galaxy S24 models that are marketed relentlessly, as well as the increase in sales of lower tier phones in markets like India.
According to Korean supply chain industry officials, Samsung’s upwards march may be coming to an end, though:
Samsung Electronics’ smartphone division performed well in the first half of the year, especially the first quarter. The smartphone market rally is over, so there is no need to unreasonably increase shipments of the low-priced Galaxy A series in the third quarter.
Another industry representative, however, adds that the release of the Galaxy Z Fold 6 and Z Flip 6 in the third quarter may be a wild card for Samsung.
The Korean phone maker is expected to position them as a direct response to the thinner and more spec’d-out competitors coming from China, so people may bite and carry Samsung’s sales fortunes into the second half of the year as well.
Daniel, a devoted tech writer at PhoneArena since 2010, has been engrossed in mobile technology since the Windows Mobile era. His expertise spans mobile hardware, software, and carrier networks, and he’s keenly interested in the future of digital health, car connectivity, and 5G. Beyond his professional pursuits, Daniel finds balance in travel, reading, and exploring new tech innovations, while contemplating the ethical and privacy implications of our digital future.
