Samsung, which is now firmly on the top of the mobile phone market, has multiple product lines covering different price points and sells hundreds of millions of mobile phones every year. Despite its success around the world, in the face of the global economic downturn, Samsung, like other mobile phone manufacturers, needs to respond by reducing shipments.
The production cut is equivalent to 40% of the first quarter shipments
A South Korean news site reported that Samsung decided to slash its overall mobile phone production by 30 million units this year, citing the economic blow from the coronavirus outbreak. Market research firm Counterpoint Research announced earlier that Samsung’s shipments in the first quarter of 2022 reached 74 million units. In other words, the amount of production reduction is about 40% of the shipments in the first quarter.
Apple is not immune
In addition to low-end to mid-range models, the reduced mobile phones also include flagship models. Originally, Samsung planned to produce 310 million mobile phones this year, but now the target number has been lowered to 280 million. Not only Samsung has been affected by the epidemic and the economic downturn, but other brands such as Apple have not been spared. It was reported earlier that they had decided to cut the production of the previously announced iPhone SE by up to 20%.