Samsung drastically cuts smartphone production plan for 2022

Samsung has lowered its forecast for smartphone production in 2022 from 310 to 280 million units, writes the South Korean edition of Maeil Business News. In absolute terms, this is still a lot of devices, but the decline in output is also very sharp, the source notes. The American edition of The Verge suggests that electronics manufacturers are beginning to prepare for the worst in the global economy.

It is reported that Samsung will reduce the production of smartphones in all segments – from flagship to budget. At the same time, reducing the production of the latter seems less logical, according to The Verge journalists. In an unstable economic situation, people are more likely to purchase more affordable smartphones than expensive ones. On the other hand, the owners of the current flagships are unlikely to decide to buy inexpensive devices, unless there is a good reason for this. It will be easier for them to wait a year or two until the economic situation in the world improves, the American edition argues.

Samsung is reportedly not the only company feeling the impact of the ongoing pandemic, volatile geopolitical environment, and rising inflation in the global economy. Apple also expects more modest sales this year, as it plans to produce about the same number of smartphones (about 220 million) as in 2021. This is about 20 million less than analysts predicted.

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