The past two years have seen a global chip shortage and a COVID-19 epidemic that has wreaked havoc on the smartphone market. According to a new report, there will be fewer phones than originally planned.
South Korea's business newspaper Maeil Business News reports that the tech giant has significantly reduced its smartphone production target for this year. According to reports, the company plans to reduce its order volume halfway through the year in order to ship less than 300 million units. The source said it was 30 million short of its initial target.
Shinhan Investment analysts told the news outlet that the company would cut production in May. As of press time, the company didn't respond to the request for comment.
According to the report, the main reasons for the production cut are high inflation and the military conflict in Ukraine. Russia's invasion of Ukraine is expected to hurt the country's handsets market this year, as per Counterpoint Research.
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Another sign of a growing trend of phone makers bracing for the impact of the worsening global economy is the lower target thatSamsung has. According to a report, Apple will only be producing 220 million iPhones this year, which is less than the market forecast.
While Apple's production cuts only apply to its flagship phones, the move bySamsung will affect phones across multiple lines. This includes budget models as well as many of the best phones that are set to launch later this year, such as the upcoming successors to the Z Fold 3 and Z Flip 3.
According to the latest report, not even the world's largest smartphone makers are immune to these types of problems.
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