Samsung has apparently slashed its smartphone production for this year. The company has lowered production goal by around 30 million units due to various reasons ranging from the economy to even the supply chain.
According to a TechRadar report, Korean media publication claimed that the company has reduced its orders of smartphones down to 280 million units from 310 million units. Furthermore, this slashing of orders is not limited to just one or two segments and has been done across its entire handset portfolio. In other words, phones ranging from the budget A series to the premium grade flagship Galaxy S and Z series have also been affected by this decision.
As per the report, there were a number of reasons why the South Korean tech giant made this move, which hints at the potential slowdown of the market. This includes economic issues as well as ongoing supply constraints. While the market did recover from the dip in 2020, with 5G handsets leading the rise, ongoing supply chain issues and materials shortages have stunted market growth. Lockdowns in China and the ongoing semiconductor shortages have also worsened the situation.
Apart from this, there have also been wider macroeconomic and geopolitical factors that have impacted the smartphone market due to their affects on the global economy. Due to these factors, consumers are less likely to purchase a new smartphone and delay their upgrade cycle. Although, Qualcomm believes that this would affect the entry level market more than the premium segments. On a positive note, the smartphone market is also expected to see a rise in the second half of this year.
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