Samsung makes a strict decision regarding the production of its smart phones in the world

Samsung
alex mathos31 May 2022Last Update : 1 month ago
Samsung makes a strict decision regarding the production of its smart phones in the world

It seems that the Korean company Samsung has reduced its production of smartphones for this year. The company lowered the production target by about 30 million units for various reasons ranging from the economy to the supply chain.

Samsung cuts smartphone production

According to a report TechRadarAccording to a Korean media outlet, the company has reduced its smartphone orders to 280 million units from 310 million units.

The reduction in orders is not limited to a specific series or category of phones, but has been applied to all the company’s phones in various categories. In other words, phones ranging from the budget class A to the flagship Galaxy S and Z series of flagships have also been affected by this decision.

According to the report, there were a number of reasons why the South Korean tech giant made the move, indicating a possible slowdown in the market.

This includes economic issues as well as ongoing supply constraints. The market has recovered from the downturn in 2020, with the rise of 5G phones, persistent supply chain issues and material shortages hampering market growth. Lockdowns in China and a persistent shortage of semiconductors have also exacerbated the situation.

Samsung makes a strict decision regarding the production of its smart phones in the world

Apart from this, there have also been broader macroeconomic and geopolitical factors that have affected the smartphone market due to their impact on the global economy.

Because of these factors, consumers are less likely to purchase a new smartphone and delay the upgrade cycle. Although Qualcomm believes this will affect the entry market more than premium segments. On the positive side, the smartphone market is also expected to see a pickup in the second half of this year.

Read also: OPPO phones update schedule to Android 12 and ColorOS 12 during June 2022

What do you think of Samsung’s decision at this time?

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