The smartphone market has been feeling a little under the weather recently. Companies are having a hard time recovering after the pandemic. Slower recovery has required companies to trim their expectations as customers have gotten more cautious with their money.
Samsung, the South Korean tech giant, is also affected by these market dynamics. Samsung is one of the biggest names when it comes to smartphone brands. The company sells millions of phones every year going hand to hand with the iPhones. However, reports say that Samsung might reduce its production numbers this year.
Samsung to slash production of smartphones; says report
A new report from Sammobile suggests that Samsung has decided to cut down its smartphone production by 30 million units in 2022. This massive reduction is a direct result of the worldwide COVID pandemic which is still affecting businesses and economies in general. Global chip shortages and supply chain issues are also a factor.
In the wake of the hard economic situation, other companies are said to have made similar moves. Apple is apparently also reducing its smartphone production for 2022. According to reports, Apple is slashing production of the iPhone SE by 20%.
Samsung is lowering production objectives across its low-to-mid-range and flagship devices, according to the report. Samsung had planned to create 310 million smartphones in 2022 but has now chosen to reduce that number to 280 million.
The corporation had set a goal of producing 300 million units by 2022, but it has yet to achieve this goal since 2017. The global economic condition, on the other hand, has reduced demand, and the company must act accordingly.
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Rising inflation results in less expenditure by the customers. According to analysts, this will even affect the sales of affordable devices. What are your thoughts on companies slashing production? Do you think they’ll come back harder next year? Comment below.