Post-Pandemic global recovery is slower than expected. That requires companies to cut their hopes because inflationary pressures force customers to be more careful with their money. The ongoing situation between Russia and Ukraine also did not help.
Samsung is also not immune to this dynamics. Companies must adapt to this challenge because they are looking for growth in the smartphone market. A new report from South Korea shows that Samsung has decided to cut its telephone production of 30 million units this year.
Other companies are reported to have taken similar steps in facing this challenging economic environment. Apple is believed to have cut its smart mobile production for 2022 too. The company reportedly cut the production of iPhone SE by 20%.
The report states that Samsung cuts production targets through low to medium and mainstay models. Samsung is reportedly going to produce 310 million smartphone units in 2022 but has now decided to cut it to 280 million units.
The company initially aimed to produce 300 million units in 2022 because it has not reached this figure after 2017. However, the global economic situation has slowed down demand and the company must react.
Inflation is in the highest main market worldwide. This causes people to limit expenses to goods they don’t immediately need. Market analyst estimates this is the main reason why affordable device sales can also decline this year.
The post Samsung expected to cut phone production by 30 million units this year first appeared on Technology Magazine.
