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Xiaomi has 20 million mobile phones stored

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Xiaomi has 20 million mobile phones stored

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In a scenario of recession and low global demand, it seems that an unexpected problem has arisen in Xiaomi: excess stock in warehouses.

There is still hope that prices will drop: Xiaomi has 20 million mobile phones in storage
They say from China that there is not room for one more pin in Xiaomi warehouses.

The mobile industry lives its worst moment in 10 years in terms of sales figures, and it is that this scenario of geopolitical crises, supply problems and high inflation has placed all manufacturers at a crossroads of recession (except for Apple) and many strategic moves in order to redress a complex situation.

In any case, the high and almost excessive prices of mobile phones have not stopped rising In recent times, and according to what has been seen and heard by the most expert analysts, It does not seem that the trend will reverse in the short termWell, everyone tells us that the price of smartphones has not peaked still.

However, Different stories are told from China which would point to a huge excess of stock in the warehouses of many manufacturers, such as Xiaomi, which would have between 20 and 30 million mobile units already produced and prepared for sale without leaving their logistics distributors.

Some of the giants of the mobile industry have very high levels of device stock, and the fact is that demand has plummeted, especially among the most affordable mobiles.

It all started from an article by Ming-Chi Kuo on Medium which subsequently opened an intense debate among users of Redditwhere they discussed the high inventory levels that Xiaomi and other manufacturers are beginning to suffer from low demandEspecially in certain price ranges.

The main reason that everyone uses is precisely the low demand by the market, since most people in this situation prefers to be conservative in the face of the announced economic recession and subsequent crisis in the making.

Some say that not only Xiaomi suffers from stock elevated, but Samsung also has a huge excess in its most affordable families that it would not return to reasonable levels until after the summer of 2023, which could cause price drops due to aggressive offers or a later renewal of this type of smartphone to sell the already assembled units of the current models.

Excess inventory could produce succulent discounts to release stock, but these discounts will not occur in the most ‘premium’ cut where the crisis is unknown, but among medium and basic cut mobiles, which are the ones that have lost the most demand. .

Component suppliers are also hurt, as MediaTek and Qualcomm are over-producing their chips now in excess of demand, while other suppliers try to transfer their excess to manufacturers and distributors under the cover of their previous contractswhich during the periods of famine in the middle of the pandemic were modified practically in their entirety.

With all this, it is expected that the declines in global smartphone sales figures continue a few more quarters, with which effectively this excess of stock could produce succulent discounts and a drop in prices, but what in no case will it occur in the terminals more premium where the crisis is not yet known.

We will now have to live with the slowdown of a market that in 10 years has not known these downward curvesbut you are going to have to get used to it at least for a while and as long as the problems and tensions do not cease both in Ukraine and elsewhere.

There is no doubt that in the face of the crisis, it has always been better to eat than change mobile… Or not?

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