Samsung, like Apple, intends to significantly cut its phone production this year, compared to the initial forecast. According to reports in the Korean press, Samsung intended to produce about 310,000 million phones this year, but it has lowered the level of expectations for production now by more than 10%, to about 270,000 million units – more or less the same amount it produced last year.
In fact, according to reports, this month the number of phones the company produces in its factories and its production partners is expected to be 35% lower than in the first third of 2022, and according to other reports, the quantity may be even smaller.
This is a blow for the company which in the first quarter reports of 2022 offered a decrease in revenue compared to last year, in the field of telephones, but expected an increase in the level of demand in the second half of the year, but now such forecasts are reversed.
One of the reasons mentioned is the rising inflation almost all over the world, which leads to rising prices and declining purchases in various fields including telephones, and along all price levels. Another reason is the continued Russian invasion of Ukraine and the war that has been going on there for four months and is not only hurting sales but also causing a sharp rise in export costs.
Both of these problems join a problem that does not end and affects the entire technological market, and not just the consumer: problems in the supply chain, in terms of component production and also in terms of shipments.