Slim Smartphone Sales Fall Flat, Apple Inc. and Samsung Electronics Co., Ltd. Scale Back Production

Major smartphone makers Apple Inc. and Samsung Electronics Co., Ltd. are facing declining consumer interest in their ultra-thin smartphone models. Products like Apple Inc.'s iPhone Air and Samsung Electronics Co., Ltd.'s Galaxy S25 Edge are struggling to gain traction compared to more feature-rich, albeit bulkier, flagship devices from the same brands. Retailers report that these slim phones contribute only a small percentage to overall sales, even during peak periods. Consumers are prioritizing value for money, opting for devices with better battery life, superior cameras, and more advanced features, even if it means a slightly thicker phone and a higher price point. The perceived trade-offs in slim models are not justifying their cost for many buyers. Retailers are experiencing difficulty selling these models, with some returning stock to distributors. Apple Inc.'s iPhone Air saw its sales share drop significantly. Analysts predict Apple Inc. may cut iPhone Air production capacity by over 80% by early 2026. Samsung Electronics Co., Ltd. has reportedly cancelled plans for a successor to the Galaxy S25 Edge due to low global sales. This trend impacts the sales and revenue of Apple Inc. and Samsung Electronics Co., Ltd., potentially affecting their stock performance. It also has implications for their extensive supply chains, component manufacturers, and the overall smartphone market strategy. Companies may shift focus back to innovation in core features rather than just design aesthetics. Impact (Rating 0-10): 7

Difficult Terms: Flagship handsets: The most advanced and expensive model offered by a company in its product line. Peak festive period: The time of year in India (typically October-December) when sales of consumer goods surge due to major festivals like Diwali and Christmas. GST: Goods and Services Tax, a consumption tax imposed on the supply of goods and services in India. Tepid: Low or moderate, not enthusiastic. Razor-thin: Extremely thin. Scaling back capacities: Reducing the ability to produce goods. Lead times: The time between the initiation and completion of a production process for a product. Supply chain: The network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.