Samsung Plans to Reduce Phone Production by 10%

Problems such as the recent chip crisis, war and pandemic had negatively affected technology giants around the world. The smartphone industry was also among those affected. South Korea based company Samsung’s showed the best performance of the last five years in the first quarter of the year; however, we have shared with you that the overall shipments have decreased.

Now, new information has come about the company, which recently announced that it plans to invest 355 billion dollars in the chip crisis. Affected by the troubles experienced in these news, the technology giant’s smartphone production this year 10% reduction his plan was revealed.

High inflation and the Russia-Ukraine war caused the decision

According to a report by the media organization Maeil Business News in South Korea, which is based on a source in the supply chain of the giant company, Samsung is expected to produce smartphones this year. 10% lowered. The company initially until the end of the year 310 million plans to ship; but this number to 280 million was said to have been dropped. It was also stated that Park Hyung-woo, a senior analyst at investment firm Shinhan Investment, plans to reduce production by 35% in May and another 10% in the second quarter, compared to the company’s average production from January to April.

According to Maeil Business News, the main reasons behind this decline are, high inflation and Russia’s invasion of Ukraine. Still, the drop in production to 280 million means that the leading company will still produce more phones than the previous year (270 million).

Finally, in the news last Wednesday, Apple’s It was also stated that he could turn to such a decision. Analysts stated that the company could produce less than the estimated 240 million. It was stated that this could be caused by global causes such as inflation, component shortages, exchange rate volatility and COVID.