Inflation Factor And Component Shortage, Samsung Cuts Smartphone Production To 30 Million Units

Illustration/Photo: Antara

JAKARTA - Samsung seems likely to cut smartphone production by 30 million units by the end of 2022.

The three main factors that caused the production cut were reported to be due to rising inflation, ongoing component shortages, and the ongoing conflict between Ukraine and Russia, as quoted from GSM Arena, Saturday, May 28.

The report was first reported by a publication from the Ginseng Country and states that Samsung's plan to produce 310 million smartphones has now shrunk to 280 million units due to these three factors.

Samsung is expected to tailor production for all device price groups from entry-level to flagships.

Even though first-quarter 2022 revenue saw Samsung break records and an estimated 73.7 million smartphone shipments globally now Samsung has had to adjust its goals.

So that production cuts are inevitable and must be done.

Other big players in the smartphone industry such as Apple are also reportedly reducing production and want to make 20 percent fewer iPhone SE units but are still targeting 220 million smartphone units this year.