The Samsung phone production will decrease by 30 million units this year, a major blow for Samsung

Samsung has reportedly cut its 310 million goal by 30 million and plans to shut down its LCD panels production.

South Korean tech giant Samsung has announced it plans to slash the production goal of its smartphones by 30 million units for the remainder of 2022. The news was made public in a Korean publication, Maeil Business News it said that the Korea based smartphone company Samsung phone production will decrease by 30 million

This technology giant has had to make the tough decision of producing fewer phones than it originally planned. As opposed to the previous estimate of 310 million units, Samsung told its distribution partners and suppliers that it would ship only 280 million smartphones.

Samsung’s reduced production is due to the same reasons Apple’s was reduced this year. Due to inflation, there was a drop in demand and a rise in costs, which adversely affected the production of goods. A number of factors contribute to the production delay, including the unavailability of chips. This might be because of the pandemic, or because the automobile industry as well as the technology industry is producing more chips. The unavailable chips are not just the major ones, for example, the CPU chips, but also minor ones. The reasons cited above, along with many others, led Samsung to drop their original production figure to 280 million only this year.

After this news, we also got to know that smartphone shipment had reduced by 11% year-over-year. Samsung is to see slow progression for the rest of the year as forecasts predict. It might be due to the foldable being launched by the company that will roughly take around 10% of the release. The sluggish phase might also slow down the marketing of the new foldable launch.

Samsung’s lower target is yet another sign of a growing trend of phone makers bracing for the potential impact of the worsening global economy. Earlier this year, Apple had also reported that they will be producing only 220 million iPhones this year versus a market forecast of around 240 million units.