May 29, 2022 13:00:00

It is reported that Samsung will reduce the production of smartphones by 30 million units

The economic impact of the pandemic of the new coronavirus infection (COVID-19) continues, and consumer spending continues to decline. Meanwhile, Samsung, which holds a large share of the smartphone market, has decided to reduce the production of smartphones by 30 million units in 2022, South Korea's MK Media Group reports.

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https://www.mk.co.kr/news/business/view/2022/05/466914/

Samsung expected to cut phone production by 30 million units this year --SamMobile
https://www.sammobile.com/news/samsung-expected-cut-phone-production-30-million-units/

Even in 2022, the impact of the pandemic of the new coronavirus continues, and prices continue to rise worldwide. As a result, Samsung's competitor Apple has reportedly plans to cut iPhone SE production by 20%.

Apple cuts production of 3rd generation iPhone SE in just a few weeks after launch-GIGAZINE

In response to this, Samsung is also planning to reduce the target production volume of all smartphones such as low-end, middle range and high-end. Initially, Samsung planned to produce 310 million smartphones in 2022, but in light of the recession, it seems that Samsung has decided to lower this number to 280 million.

Since 2017, Samsung has never exceeded 300 million smartphone production in a year. It was supposed to reach this target in 2022, but it seems that it had no choice but to reduce production in response to the decline in demand due to the global recession.

Inflation is increasing in markets around the world due to the recession, which is driving consumer spending more and more. “Affordable smartphone sales could also decline in 2022,” said market analysts, as spending on products that aren't immediately needed is declining.

Meanwhile, Samsung saw a 10% year-on-year decrease in smartphone shipments in Europe in the first quarter of 2022 (January-March). However, Samsung is still the leader in smartphone shipments in Europe, ahead of Apple and Xiaomi.

According to data from research firm

Canalys , total smartphone shipments in the European market in the first quarter of 2022 were 41.7 million units, down 10% year-on-year. By manufacturer, Samsung recorded 14.6 million units, down 9% year-on-year, Apple recorded 8.9 million units, up 1% year-on-year, and Xiaomi recorded 8.2 million units, down 22% year-on-year. Samsung's share of the European market during the same period was 35%.