Samsung shocked everyone with a decision related to the production of phones!

Samsung
alex mathos27 May 2022Last Update : 1 month ago
Samsung shocked everyone with a decision related to the production of phones!

Samsung plans to reduce its annual production of phones this year, due to lower demand due to high global prices, as Apple has also reduced its production.

Details of Samsung reducing its production of phones

Returns The main reason In the decline in demand for smartphones due to high global prices and the war between Russia and Ukraine, where the new report stated that Samsung Electronics has reduced production for all its categories, including the leading category.

“Recently, Samsung Electronics received a call to reduce the production volume of phones from 310 million units to 280 million units,” said an official from a partner company of Samsung Electronics.

Samsung shocked everyone with a decision related to the production of phones!

Reports stated that the company has reduced production for 2022 by about 10% to 270 million units, after producing 300 million units in 2017.

As of May, the production adjustment has been confirmed, and phone production in May is expected to drop 35% compared to the January-April average.

Analysts stated that “the sales volume of mid- to low-priced products is expected to be slow compared to the previous year.”

And Nikkei previously reported that Apple will cut iPhone SE production by 20% compared to the original plan (2 million to 3 million more units compared to the original plan).

Read also.. Samsung sweeps the phone market at the highest level in 5 years.. Here’s the reason

This is because the demand for medium to low prices is decreasing due to higher prices, and the supply of spare parts is also reduced.

And while Apple has mainly adjusted production for the mid-to-lower phones while keeping the premium phones (the high price tag), Samsung Electronics appears to be adjusting production for both phones in all classes.

Samsung shocked everyone with a decision related to the production of phones!

In your opinion, will the phone market overcome these problems? Share with us in the comments.

Short Link