Following Apple, Samsung Electronics is cutting down the number of phones it plans to produce in 2022, from 310 million to 280 million.
The Korean publication SKMBN was the first to report the news.
Reportedly, The decision is because the demand for smartphones has decreased due to high global prices and the war between Russia and Ukraine.
While Apple precisely cut down production for mid-to-low priced models, Samsung seems to have cut down production for all models, including their flagship (expensive mobile phone) models.
At the Tech giant’s first-quarter earnings call held on the 28th of April, It identified that the smartphone market had entered into an off-season. Its operating profit on mobile experience and network divisions had decreased by 570 billion compared to the same period in the previous year.
In 2021, Samsung Electronics predicted that the growth of the smartphone market would continue in the second half of 2022. Still, the situation did not improve due to the prolonged war in Ukraine; it seems to have lowered the forecast and cut production in less than a month.
However, Smartphone production cuts are not unique to Samsung; Apple also has cut down production of the iPhone SE by 20% because of the decrease in market demand and the disruption in the supply of parts.
Consequently, the efforts of these tech giants will affect the growth of the smartphone market, thus its annual sales of 1.4 billion units is expected to reduce this year.
Also, Samsung Parts Markers are not exempt from taking a hit from this cut-down. Samsung recently revised the order to reduce the number of parts supplied.
The effects of a continuing pandemic, the Russia / Ukraine war, and ever-increasing inflation have halted or slowed down the activities of several companies across Africa and the world at large.
Join the conversation, follow us @GoSpeedHub on Facebook, Instagram, and Twitter.
Image Source – Samsung
