Samsung is reportedly cutting back on its production plans this year. The company is not expecting huge demand for its devices in 2022, so its manufacturing estimates are expected to be lower than last year.
The Alec report suggests that Samsung is being forced to rethink its plans for the rest of 2022 based on market dynamics, which include lowering consumer demand.
The report added that Samsung had set a target of making 334 million smartphones, and plans to ship 300 million units to different markets. However, the South Korean giant has changed its plans, and will now ship only 260 million units. When you compare these figures to 2021, Samsung shipped 270 million units and manufactured 300 million units.
Moreover, Samsung is also cutting its production for the festive period, which clearly indicates that the market for smartphone players is not expected to grow in the coming quarter.
Samsung is concerned with several factors in coming to such a decision. It predicts low consumer demand, inflation affecting consumer purchases, and some issues related to the supply chain.
These details come at an intriguing time, as the company has unveiled its latest foldable device in the market. Samsung also pointed out that inflation has not affected the demand for the Galaxy Z Fold 4 and Galaxy Z Flip 4 in any way. It is possible that Samsung has not felt the need to change its production plans for the premium segment, where consumers desire these innovative products.
But the biggest barometer for demand will become clear when Apple launches the new iPhone 14 series, which according to the report is expected to happen sometime in the middle of this year.
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