30 million less Samsung smartphones will be released this year. According to the Korean Maeil Economic Daily, the company planned to release about 310 million smartphones in 2022. Now the plans have been reduced to 280 million.
This will reduce not only budget and mid-range smartphones. Production of flagship models has also been reduced. The company expects low- and mid-range smartphones to sell “slowly” due to competition.
Samsung’s statement about the reduction in production came a day after Apple reported, that it will not increase iPhone output. The reasons for the cautious behavior of both giants are the same. Among them are rising inflation, which affects the purchasing power of customers, the shortage of chips and other components, as well as the unstable market due to the war in Ukraine.
Samsung currently owns 24% of the global smartphone market, which is the company’s highest performance in the last 5 years. This assessment was published by Strategy Analytics last month. By the way, it was flagship Galaxy series that brought a lot of success to the company and in particular S22 Ultra model.