Samsung phone production is said to be experiencing a major setback this year

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Citing a source in Samsung’s supply chain, South Korea’s business newspaper Maeil Business News reports(opens in new tab) that the tech giant has significantly reduced its smartphone production target for this year (via SamMobile(opens in new tab)). Samsung has reportedly informed its suppliers that it plans to scale back its order volume halfway through 2022, meaning the company intends to ship only 280 million units this year. The source said that’s 30 million short of its initial target of 310 million units.

The IT titan’s output projection appears to be hampered by high prices and the Ukraine conflict. For the greater part of the last two years, the COVID-19 epidemic and a global chip shortage(opens in new tab) have caused havoc on the smartphone business, and things aren’t looking good this year either. Samsung plans to create fewer phones than it had anticipated, according to a new report.

Highlights

  • 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. Most recently, Apple was reported to be producing only 220 million iPhones this year(opens in new tab), versus a market forecast of around 240 million units. But while Apple’s production cuts apply only to its flagship phones, Samsung’s move will affect handsets across multiple lines. This includes budget models as well as many of the best Samsung phones(opens in new tab) set to launch later this year, such as the upcoming successors to the Galaxy Z Fold 3(opens in new tab) and Z Flip 3.

  • Shinhan Investment analysts also told the news outlet that Samsung would cut production by 35% in May. Samsung didn’t immediately respond to Android Central’s request for comment as of press time. According to the report, the key reasons for the production cut are high inflation and the ongoing military conflict in Ukraine. In particular, Russia’s invasion of Ukraine is expected to take its toll on the country’s handset market(opens in new tab) this year, as per Counterpoint Research.

Jay Bonggolto always keeps a nose for news. He is a tech journalist based in the Philippines who has been writing about consumer tech for the past six years and has been using various Android phones since falling in love with Jelly Bean. When he’s not writing, he likes to spend time outside, stealing scenes with his phone camera. The Galaxy S22 Ultra is incredible by many accounts, but after spending a bit of hands-on time, I decided to cancel my preorder; here’s why.

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