Those who have been thinking COVID-19 was just flu, should take a look at the world now. We mean the Earth has been recovering from the disease and it seems everything will go back to the way things were, but the thing is that we will feel on our skins the consequences of the pandemic for many years. If you are not aware of what we are talking about, just know that Samsung has required its partner companies to trim their expectations. The reason is that inflation around the globe makes people more cautious with their money. Simply put, they do not want to spend much money on things they can skip for the moment. The lockdowns in China and the war between Russia and Ukraine worsen the situation even more.
Though Samsung is the king in the smartphone segment, it still doesn’t have an immunity to these dynamics. In order to walk hand in hand with the current situation, the South Korean manufacturer has to make operative decisions. In this regard, the news coming our way from Sammobile that “Samsung has decided to cut its smartphone production by 30 million units this year” sounds quite logical.
Not only Samsung, but its rivals are making similar decisions as well. According to various leaks, Apple will cut its smartphone production for 2022 as well. By the way, the main victim will be the iPhone SE, the initial order of which will be cut by 20%.
The same situation is for Samsung. The categories that will suffer from this decision are its low to mid-end models. But flagship models wouldn’t avoid it as well. Initially, the company should produce 310 million units of smartphones in 2022. As for now, the number has been dropped to 280 million units.