Samsung will reduce production of its smartphones by around 10% in 2022, due to inflation and expected weak demand, especially for inexpensive mobiles.
After a very bright year at Samsung despite the complicated environment due to the pandemic, supply crises and geopolitical issues, it seems that in Suwon they are now more aware that high inflation will be a serious problem, already foreseeing the reduction of its production capacities to around 30 million smartphones during this year 2022.
And that both Samsung itself and Apple had been the first and almost only beneficiaries of the entire difficult global scenario, maintaining or even increasing their participation shares in an industry in which practically all of them fell along with the demand for smartphones in he monde
A Samsung smartphone, with proprietary services included in One UI.
We were told about it by MSPowerUser colleagues, who, according to sources close to a Samsung Electronics partner, reported on the decisions considered by the management of the South Korean company, considering reducing the production of smartphones by about 10 % by the end of the year, especially in the case of devices ordered from third-party OEMs in China.
Apparently, of the 310 million units Samsung planned to ship during 2022, the plan is now to stay around the 280 million smartphones shipped at the end of the year, reducing its orders as Apple had done before.
The Samsung Galaxy S22 loses its value up to three times faster than an iPhone 13
The differences between one and the other lie in the fact that Apple has maintained orders for its premium mobiles, only reducing the medium and low ranges -the iPhone SE (2022) has reduced its production by 20%- , while Samsung will also, albeit to a lesser extent, limit production number of its most expensive and capable phones.
The reasons invoked are already known, starting with the high world prices which strongly increase production costs, all due to the problems of logistics and supply caused by the new waves of Covid in Asia and also the war between Ukraine and Russia.
They say of Samsung that a reduction in demand for cheaper phones is expected, also accentuated by what Suwon calls the “low season”, which is precisely that period which includes half of the year between the drop in demand for the Galaxy S and the arrival of the Galaxy Z or before the Galaxy Note.
What is clear to all of us is that inflation affects everyone, so indeed Samsung will also be mired in problems driven by a market which is also expected to fall, with the figure well below the 1,400 million expected by 2022 of smartphones sold in 2021.
In the electronics and mobile phone industry, Samsung shines brighter than ever
Related Topics: Samsung
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