According to a new report from a reputable South Korean news publication, Samsung will produce 30 million fewer smartphones in 2022. The three main factors for the production decline are rising inflation and subsequent consumer spending, the ongoing component shortage and the war in Ukraine. Samsung is expected to adjust production for all price brackets of devices from entry-level to flagships.
Samsung initially planned to manufacture 310 million smartphones for 2022 but the latest developments have forced the Korean tech conglomerate to dial back its goal to 280 million units. Despite record-breaking Q1 revenues and an estimated 73.7 million smartphone shipments globally, Samsung will have to adjust its goals. Other big players like Apple are also reportedly cutting down production with Cupertino looking to make 20% fewer iPhone SE units.