The Samsung Galaxy S20 series unveiled last month is not selling as well as the company had expected due to the coronavirus pandemic slowing smartphone demand and driving down shipments around the world.
A report by Seoul Economic Daily (opens in new tab) says there are "concerns about a sharp drop in demand" after the Galaxy S20 lineup sold just 60% as much as its Samsung Galaxy S10 predecessors in the same period last year. The data, which will become official when Samsung announces its quarter results, points to the COVID-19 outbreak as the leading factor of disappointing sales.
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The smartphone market in particular has been hit hard by the ongoing health pandemic. At first, production operations in China set back the manufacturing and shipment of certain devices, like the iPhone 9. Now Apple, Sprint, T-Mobile and Verizon stores are closed throughout the US and other parts of the world for the safety of employees.
As a result, global smartphone shipments fell 38% YoY in February, Strategy Analytics (opens in new tab) found. While Samsung still tops the sales chart (followed by Apple), evidence suggests now is not the time people are looking to upgrade their phones.
Samsung hasn't changed the Galaxy S20's 32 million sales target (opens in new tab), despite low odds of reaching that distribution.
Along with the spread of coronavirus, high prices might have slowed Galaxy S20 phone sales, too. The entry-level Samsung Galaxy S20 starts at $999, while the premium Samsung Galaxy S20 Ultra costs $1,399.