Samsung is cutting the number of phones it plans to produce in 2022 from 310 million to 280 million according to SamMobile, which cites a claim from Korean publication Maeil Business News. In absolute terms, that is still a large number of Samsung phones. Although it is a significant fall from its original target (and from the reported number of phones it and its partners produced last year). It appears that manufacturers are preparing for the economy to worsen before it improves. Below is everything we know related to Samsung cutting the production of their smartphones.
The industry was already slowing before the Covid Virus entered the scene. The glory days of expanding markets and bi-annual upgrades appear to be over. Two years of financial difficulties and supply chain bottlenecks have further aggravated the situation. It’s not unexpected that firms are cutting back on production for all of these reasons.
Is Samsung the only company cutting production?
Samsung is not alone in feeling the consequences of a lingering pandemic, the Russia/Ukraine conflict; which has resulted in the company, along with many others, suspending exports to Russia, and rising inflation. Apple is also apparently expecting relatively flat sales this year. It plans to produce roughly the same amount of phones as it did in 2021. Despite the fact that it is presumably working on some quite significant enhancements.
Other corporations, including Apple, have reportedly taken similar moves in response to the hard economic environment. Apple has reduced the production of the iPhone SE this year by 20%. Apple is also apparently expecting relatively flat sales this year, as it plans to produce roughly the same amount of phones as it did in 2021, despite the fact that it is presumably working on some quite significant enhancements.
However, there are lingering concerns about the Samsung industry’s future. The biggest question regarding Samsung cutting production is whether this is a slowdown after a decade of rapid smartphone sales, or whether new technologies like foldable screens could launch a return to the mobile golden age.
