Samsung is reportedly cutting its production plans this year. The company is not expecting big demand for its devices in 2022, so its manufacturing projections are expected to be lower than what they had last year.
The report from The Elec suggests Samsung is being forced to rethink its plans for the rest of 2022 based on the market dynamics, which includes lowering consumer demand.
The report says Samsung had set a target of manufacturing 334 million smartphones, and the plan was to ship 300 million units of those to different markets. However, the South Korean giant has changed its plans, and will now ship only 260 million units. When you compare these figures to 2021, Samsung shipped 270 million units and manufactured 300 million units.
In addition to this, Samsung is cutting down on its production for the festive period as well, which clearly indicates that the market is not expected to grow in the coming quarter for the smartphone players.
Samsung is worried about multiple factors in coming to such a decision. It foresees low consumer demand, inflation affecting consumer purchases and some issues still related to the supply chain.
These details come at an intriguing time, as the company has unveiled its latest foldable devices in the market. Samsung also pointed out that inflation has not affected its demand for the Galaxy Z Fold 4 and the Galaxy Z Flip 4 in any way. It is possible that Samsung has not felt the need to tweak its production plans for the premium segment, where consumers aspire for these innovative products.
But the biggest barometer for demand will become evident when Apple launches the new iPhone 14 series, which is expected sometime mid-Sept this year as per reports.
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