Samsung could cut smartphone production by 30 million units this year
South Korean electronics giant Samsung plans to cut its smartphone production by 30 million in 2022. This reduction is expected to impact its midrange and flagship smartphones.
According to the media, the three main reasons for this decline are the drop in global demand for smartphones due to the COVID-19 pandemic, the continuous shortage of electronic components and the Russian-Ukrainian war.
Samsung was going to produce 310 million units of smartphones in 2022, but it has since revised that target to 280 million units. Moreover, Samsung is also said to have changed the orders of its electronic component manufacturing companies as global headwinds hit its components business as well. The company reportedly cut volume for up to a month for its component manufacturing businesses.
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Previously, other electronics and smartphone companies had taken similar steps to overcome the crisis. Companies like Apple have reportedly cut iPhone SE production by 20% and won’t increase the number of iPhones made this year, Business Standard reported.
Samsung is also looking to exit the high-volume phone market in India. The company will now focus on launching smartphones above Rs 15,000, according to a report by ET Telecom. The move is in line with the Production Linked Incentive Scheme (PLI) introduced by the government, which requires a company to manufacture phones at a minimum factory value of Rs 15,000 to qualify for the benefits.