Samsung follows Apple's lead by reducing production by 30M in 2022

After Apple's announcement to reduce its production by 20M this year, Samsung decided to cut back on its production too, reports SM via SKMBN.

The entire smartphone technology market has been feeling a lot of pressure because of the recent turn of events. Apple, not being a major sole smartphone producer, cut down its production due to market pressure and unforeseeable reasons when it had planned to launch almost 240 million iPhones in 2022. Samsung is now following the lead because of the same reasons.

The first quarter of 2022 had proven to be the best year for Samsung, with the highest sales and consumer demands. The demand had been so high that Samsung had planned to produce almost 310 million smartphones at the start of the year. Samsung had almost 24% of the global smartphone market at its disposal. It also had the highest performance in Q1 of 2022 than it has had in 5 years. This is due to the high demand for the newest Samsung Galaxy series. The Samsung Galaxy S22 series managed to bag all the customers this year and produced one of the highest performing Q1 that Samsung has had in a long time.

After this news, we also got to know that smartphone shipment had reduced by 11% year-over-year. Samsung is to see slow progression for the rest of the year as forecasts predict. It might be due to the foldable being launched by the company that will roughly take around 10% of the release. The sluggish phase might also slow down the marketing of the new foldable launch.

The reasons behind Samsung's reduced production this year are similar to those of Apple. The inflation has resulted in a low demand as well as higher costs, which automatically results in lower production. Furthermore, the unavailability of chips is a major cause of the hindrance in production. The lack of chips can be due to the pandemic or the increase in production in the automobile industry as well as the tech industry. Chips unavailable aren't just the major ones, i.e the CPU chips, but are minor ones too. Both of these reasons, along with many others, have made Samsung drop their original production figure to 280 million only this year.

We look forward to the Samsung Galaxy Flip and Fold models being launched this year and hope they have a positive impact on the growth of Samsung this year.

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