Samsung is the largest smartphone manufacturer in the world, but that doesn’t mean it is immune to the problems currently affecting the entire global economy. According to a new report, Samsung plans to cut its smartphone production by 10% this year. That would be 30 million smartphones.
Smartphone market continues to shrink
The global chip shortage as a result of the corona pandemic affects the entire global economy, including the smartphone market. Researchers from IDC indicated that fewer smartphones were sold due to the worldwide chip shortage. It is expected that the consequences of the chip shortage will also be visible in the course of 2022. The European Commission proposed a new Chip Act at the beginning of this year, with which they want to combat the enormous production shortages of chips. Apparently, this law comes too late for Samsung.
According to the South Korean Maeil Economic Daily Samsung has informed its partners about cuts in smartphone production for the remainder of 2022. Initially, Samsung planned to produce about 310 million smartphones by 2022, but that number has been reduced to about 280 million devices. Apple would be too have adjusted production from 240 million to 220 million smartphones.
The South Korean website lists high inflation as one of the reasons for the production cut. This high inflation mainly affects the purchase of new products by consumers. Furthermore, the ongoing shortage of chips and other components continues to affect everyone from Samsung to Apple. And finally, the uncertainty surrounding the war in Ukraine and the subsequent economic problems in Russia have affected the market.
The production cut would affect the entire range of Samsung, from the cheaper budget phones to the yet to be announced foldable smartphones. Apple would only lower the production of its high-end phones.
More news about the smartphone market
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- A new smartphone manufacturer is coming to the Netherlands
- This manufacturer currently sells the most phones in the Netherlands
- Research: New smartphones are becoming less popular
Samsung Galaxy S22 Ultra
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– Thanks for information from Androidworld. Source