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Samsung puts in weaker-than-expected smartphone component orders to supply chain

Sammi Huang, Taipei; Alex Wolfgram, DIGITIMES [Tuesday 6 May 2014]

Samsung Electronics is putting in weaker-than-expected handset component orders to the supply chain as competition from other vendors, most notably in the China market, intensifies.

The company has been focused on expanding its handset product mix in the first quarter of 2014 to further compete in the market but as competition from other vendors intensifies Samsung is reevaluating its market outlook, which will affect orders to upstream supply chains.

Supply chains were running on tight supply in the first quarter to meet Samsung demand and were expected to do so in the following quarter but Samsung has now slowed down its orders, stating to supply chains that it has conservative shipment outlooks for the second quarter of 2014.

Samsung's decrease in orders are expected to be mostly for low-priced smartphones.

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