Samsung has reportedly scaled back production plans this year. The company doesn’t expect strong demand for its devices in 2022, so its manufacturing projections are likely to be lower than last year.
The report from The Elec suggests that Samsung is forced to rethink its plans for the rest of 2022 based on market dynamics, which includes a drop in consumer demand.
The report said that Samsung had set a target to manufacture 334 million smartphones, and the plan was to ship 300 million units to different markets. However, the South Korean giant has changed its plans and will only ship 260 million units. When you compare those numbers to 2021, Samsung shipped 270 million units and manufactured 300 million units.
On top of that, Samsung is also reducing its production for the holiday season, which clearly indicates that the market is not expected to grow in the next quarter for smartphone gamers.
Samsung is concerned about several factors in making such a decision. He foresees weak consumer demand, inflation affecting consumer purchases and some still supply chain issues.
These details come at an intriguing time, as the company has unveiled its latest foldable devices to market. Samsung also pointed out that inflation has not affected its demand for the Galaxy Z Fold 4 and Galaxy Z Flip 4 in any way. It is possible that Samsung did not feel the need to change its production plans for the high-end segment. range, where consumers yearn for these innovative products.
But the biggest demand barometer will become evident when Apple launches the new iPhone 14 series, which is reportedly expected around mid-September this year.
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