Samsung cut smartphone production

Samsung will produce fewer smartphones in 2022 than previously planned. This is reported by the Korean edition of Maeil Business News.

Samsung intends to reduce the production of smartphones by 30 million units. According to insiders, if the company previously planned to ship 310 million devices by the end of 2022, now it is going to set the bar at 280 million devices. As it became known to journalists, the corporation intends to reduce both the number of flagship and low-cost phones.

Experts cited high inflation and the armed conflict in Ukraine as reasons for the reduction in production. “Mid- and low-end device sales are expected to be sluggish compared to last year,” said Park Jin Suk, an analyst at Counterpoint Research.

As journalists noted, in 2017, Samsung released about 300 million smartphones. “It is difficult to communicate the official position of the company on this issue. We are monitoring the situation on the market, ”an official representative of the company said during the summing up of the financial results for the first quarter.

At the end of May, Bloomberg sources said that Apple abandoned the idea to increase the production of new smartphones due to a number of problems. So, the company decided to release no more than 220 million new-generation smartphones by the end of the year.