Despite initially ambitious objectives, Samsung has decided to reduce its production of smartphones by 30 million copies in 2022. The fault of a more difficult global context than expected.
The smartphone market has known good times when the flagship models sold like hotcakes. However, the dynamic over the coming months looks less encouraging from Samsung’s point of view.
30 million fewer smartphones
This is what is whispered in the industry in South Korea. Samsung has thus decided to reduce its production of smartphones by 30 million units compared to its initial ambitions in 2022. A source thus indicates that the firm’s orders have gone from 310 to 280 million copies. Another report mentions a drop from 300 to 270 million.
All price segments would be affected, from entry-level to flagship models. According to some sources, Samsung hoped to reach the 300 million unit mark again in 2022, which would have been a first since 2017. A target which will therefore a priori not be achieved.
A difficult context
The global economy has not yet fully recovered from the crisis caused by the Covid-19 pandemic. Added to this are worries about the war between Russia and Ukraine and households whose purchasing power is threatened as inflation climbs in many countries around the world.
Faced with this context, a company like Samsung must necessarily make good strategic decisions. The South Korean company would therefore have decided to act cautiously and it would not be the only one in this case.
Apple, Samsung, same fight
Indeed, we recently learned that Apple also intended to reduce production of the iPhone SE 2022, by around 20% compared to the initial plans of the apple. The reasons are similar: falling demand and a complex global context to understand.
Samsung will therefore lay back for a while, but it will not be the only one. In the meantime, the brand’s next major milestone in the smartphone market will be the presentation of its new foldable models, the Galaxy Z Fold 4 and Galaxy Z Flip 4.
https://www.frandroid.com/marques/samsung/1280859_galaxy-z-fold-3-z-flip-3-pourquoi-samsung-ne-veut-plus-du-z-dans-certains-pays
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