In recent years, declining smartphone shipments have become the new norm. A Canalys report revealed that global smartphone shipments fell by 9% in Q2,2022. The situation is only expected to get worse in the coming days. And it seems like Samsung has already anticipated the downfall as the company has reportedly dropped its smartphone shipment target for 2022.
According to a report by Korean publication TheElec, Samsung is re-evaluating its production strategy for 2022. The company has revised its smartphone shipment target for this year from the previous 300 million units to 260 million units.
The original manufacturing target was 334 million smartphones. Out of the total 334 million units, 284 million would have been manufactured in Samsung’s own facilities, while the remaining 50 million going to joint development manufacturers in China. However, the company is now reconsidering its decision and had reportedly revised the numbers.
As per the publication, the South Korean company is planning to manufacture 34 million units of smartphones on its own between October and November. This is far less than prior quarters and the same time period years ago.
For reference, Samsung faced a lot of challenges in 2020 due to the pandemic and it still shipped 250 million smartphones that year. The pandemic eased off a bit in 2021, which clearly benefitted the company as it manufactured 300 million units and shipped 270 million of them. Its new goal for 2022 is less than that, even if it successfully ships the projected units, which is unlikely.
According to sources, the reduced targets this year are due to rising inflation, lower consumer demand, and supply chain issues. Not only Samsung, but almost all OEMs are suffering due to these issues. The only company that seems to be unaffected is Apple.
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