Samsung is reportedly scaling again the variety of telephones it’s planning on producing in 2022, from 310 million to 280 million, according to SamMobile, which cites a report from Korean outlet Maeil Enterprise Information. In absolute phrases, that’s nonetheless various telephones, nevertheless it’s a comparatively sharp lower from the corporate’s unique objective (and from the reported number of phones it and its companions produced final yr). Evidently there could also be a pattern of producers making ready for the financial system to worsen earlier than it will get higher.
Reportedly, the lowered manufacturing targets will have an effect on telephones throughout its lineup, from low-end fashions to flagships. In a approach, chopping the manufacturing of its cheaper telephones sounds counter-intuitive — wouldn’t extra folks flip to these throughout an financial downturn? Nevertheless it tracks when you think about that the choice is simply not shopping for a cellphone in any respect; people who find themselves out there for low-end telephones may not need to purchase a brand new one until they completely must, and those that have high-end telephones would most likely be higher off simply holding them for an additional yr or two.
Samsung isn’t alone in feeling the consequences of a seamless pandemic, the Russia / Ukraine warfare (which has resulted within the firm, together with many others, halting shipments to Russia), and ever-increasing inflation. Apple’s additionally reportedly expecting relatively stagnant sales this year, because it’s planning to supply across the identical variety of telephones because it did in 2021, although it’s probably engaged on some fairly large upgrades.