Three Main Factors Samsung Cuts Cellphone Production To 30 Million This Year

JAKARTA - Supply chain constraints and rising inflation still haunt Samsung, so the company will produce 30 million fewer smartphones this year.

According to a report from South Korean media, Maeil Business News, the three main factors for the decline in production are supply chain constraints, rising inflation and falling consumer spending, and even the war in Ukraine which has also seriously affected Samsung.

In March, the company followed fellow tech giants Microsoft and Apple in suspending sales in Russia as well.

That way, Samsung will only adjust production for all price groups of devices from entry-level to flagships.

Samsung originally planned to produce 310 million smartphones for 2022, but recent developments have forced the company to change its target to 280 million units.

Despite record-breaking Q1 revenue and an estimated 73.7 million smartphone shipments globally, Samsung still has to adjust its goals.

Launching TechCrunch, Monday, May 30, other big players like Apple have also felt the pain. A recent Bloomberg report noted that the iPhone maker is curtailing plans to produce an additional 20 million phones by 2022.

Instead, the numbers will reportedly remain flat from 2021. The report follows several quarters of iPhone sales that have managed to make big money, the industry's macro trend, but the company may be heading back downhill, even with the arrival of the iPhone 14 soon to hit the global market.