War, inflation and chip shortages: Samsung cuts smartphone production by 30 million

The Korean edition of Maeil Economic Daily in a new report reports that one of the largest gadget manufacturers Samsung is reducing the production of smartphones.

How much and why?

Samsung has reportedly notified its partners to cut smartphone production for the remainder of 2022. The total volume, according to the publication, decreased by 30 million smartphones. So, if initially Samsung planned to produce about 310 million smartphones during the current year, now this figure has been reduced to about 280 million devices.

Samsung cites the continued rise in inflation as a key reason for the cuts in production, especially as it impacts consumer spending on new products. In addition, the constant shortage of chips and other components continues to affect everyone from Samsung to Apple and limit production accordingly. The war in Ukraine and the subsequent economic problems in Russia also affect the reduction in production.

By the way, the other day there was also information that Apple will not increase production this year, planning to release 220 million iPhones. Market forecasts expected around 240 million units in 2022.

Source: Maeil Economic Daily, 9to5google