According to a fresh exclusive revelation from a prominent Korean tech blog, Samsung may be compelled to dramatically curtail smartphone output this year. According to the source, Samsung may reduce smartphone output by up to 30 million devices by 2022.
Rising inflation, lower customer spending, and the ongoing conflict between Russia and Ukraine are the key causes of this decrease. The manufacturing drop will be evenly distributed across all Galaxy smartphone price groups, from entry-level to premium models.
According to sources acquainted with the situation, the Korean tech giant had intended to produce 310 million smartphones this year, but due to recent events, the objective has been lowered to 280 million devices.
Despite record-breaking Q1 revenues and an anticipated 73.7 million smartphones supplied globally, it appears that Samsung may have to modify its financial forecasts.
Recent events have had a negative impact on more than just Samsung. Other major companies, such as Apple, are reportedly reducing production, with the Cupertino company planning to produce 20% fewer iPhone SE models this year.
According to an older rumor, Samsung is aiming to build more units for its future foldable, so the overall output is likely to be greater than last year, but lower than what was intended for 2022.