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According to the latest report from South Korea, Samsung is rumored to be reducing the production of the number of smartphone they will be 30 million fewer for the rest of 2022!
There are several factors that cause this, including the problem of component shortages that have been going on for a long time, the war in Ukraine and also rising inflation rates. However, the reason for inflation is the most influential and Samsung was forced to adjust production for all categories of their devices starting from class entry-level until flagship.
Samsung originally planned to produce 310 million smartphone for 2022, but hit by inflation, they were forced to change their target to just 280 million units. Although revenue during Q1 is expected to reach 73.7 million shipments smartphone globally, Samsung must adjust its target so as not to be affected by sustained inflation.
Not only Samsung, players in the same category as Apple are also reportedly reducing their production, where they will make 20% fewer iPhone SE units this year.
via MK
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