Samsung will reportedly produce 30 million fewer smartphones in 2022, following challenges brought by the Ukraine conflict, rising inflation and the persistent component shortage.
The company is the world’s largest smartphone seller. Last year, Samsung shipped 272 million units while Apple, Xiaomi, OPPO and vivo recorded their highest-ever annual shipments. Apple is also reported to drop plans to produce 20 million extra iPhone units this year.
In its Q1 2022 outlook, Samsung reported having shipped a record-breaking 73.7 million units. The company is set to make changes in the production of all its mobile devices from entry-level to flagships.
The Korean giant initially planned to manufacture 310 million smartphones in 2022, but there are several global factors that will inhibit this vision.
“It’s a perfect storm of industry and global factors that have gotten us to this place.” Brian Heater from TechCrunch writes. “But there are broader questions that remain about the industry going forward. Biggest of all is whether this is a lull following a decade of explosive smartphone sales, or whether not even the arrival of new technologies like foldable screens will kickstart a return to the mobile golden age.”
The semiconductor shortage that hit the world soon after Covid-19 has adversely affected production. Many companies are working around external and internal factors to maintain a healthy balance sheet.