Samsung to peeved Galaxy S4 parts suppliers: don't worry, Galaxy Note 3 mass production starts in August
Samsung's suppliers will be negatively hit to the tune of 20-30% order cut for display, silicon and camera parts in July, revealed yesterday industry insiders in Korea. That's because the overall orders for the flagship Galaxy S4 have been reduced by Samsung to 6.5 million in July, just as we've heard several times before.
Suppliers who have good inventory management systems only keep two or three days supply of parts, but those with less than stellar management will be stuck with up to ten days worth of parts that might not get into use soon, which will affect profitability, say the insiders.
Samsung has allegedly calmed things down, confirms an insider from its Wireless Business department, saying that soon the Galaxy Note 3 orders will start coming in, as in August, as well as whatever the demand for the S4 Zoom and S4 Mini turns out to be, which will mitigate the impact from the reduction in orders for Samsung's bestselling flagship: “[Samsung] had reduced the order to each suppliers at the similar rates. Since we will start placing orders for follow-up models, such as Galaxy Note III, from August, the impact to suppliers will be minimal.”
There was even a rumor that Samsung could announce the Note 3 earlier than the IFA expo in September, to combat the loss of S4 sales, as well as the initial sales of Sony's Xperia ZU aka Togari phablet, which is expected to be announced tomorrow.