According to a press release, South Korean manufacturer Samsung Electronics is also preparing for lower demand for smartphones than initially expected due to the current uncertain economic situation in the world. Production is being throttled.
The group has informed its suppliers that it will cut its production target by 10 percent for the current year, South Korean newspaper Maeil Business Newspaper reported.
The newspaper referred to statements by an unnamed manager of a Samsung supplier. According to this forecast, the global market leader in smartphones expects production of 280 million devices only in 2022 instead of the originally planned 310 million devices.
War and inflation depress demand
The war in Ukraine and accelerated inflation had recently dampened demand for smartphones significantly. American competitor Apple is said to have lowered the production target for its iPhone and only wants to produce about 220 million devices this year, Bloomberg news agency reported the day before, based on insiders.
For example, according to calculations by market research firm Canalys, the smartphone market in Europe had already shrunk by ten percent year-on-year in the first quarter. Samsung had also warned in April that demand would continue to decline in the second quarter.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
