According to Reuters, the world’s largest smartphone manufacturer has reduced production, which is a consequence of the global drop in demand caused by economic difficulties, i.e. reduced spending on electronics due to inflation and the entry into recession of some world economies.
Samsung’s Thai Nguyen plant in Vietnam is producing half as many smartphones as it did last year, as reported by Reuters according to employee reports. Samsung’s two factories in Vietnam annually deliver 100 million smartphones, while last year Samsung globally delivered around 272 million smartphones. Reuters leaves the possibility that Samsung replaced the production capacities from Vietnam with others in South Korea or India, but they were unable to confirm this.
It was recently reported that Samsung has as many as 50 million unsold smartphones in storage because the production target for 2022 was 334 million devices expecting higher demand, and it turns out that in the current year the demand is lower than expected. Having so many devices in stock may also be one of the reasons for the alleged lower production.