South Korean electronics giant Samsung is reportedly planning to cut down its smartphone production by 30 million in 2022. The cut is likely to impact its mid-tier and flagship smartphones.
According to media reports, the three main reasons behind the cut include a decline in demand for smartphones globally due to the COVID-19 pandemic, the ongoing shortage of electronic components and the Russia-Ukraine war.
Samsung was reportedly going to produce 310 million units of smartphones in 2022, but it has since revised that target to 280 million units. Additionally, Samsung is also learnt to have amended orders to its electronic component manufacturing companies as global headwinds have also hit its components business. The company reportedly reduced its volume by up to a month for its components manufacturing companies.
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Earlier, other electronics and smartphone companies took similar steps to tide over the crisis. Companies like Apple had reportedly cut production of the iPhone SE by 20 percent and will reportedly not increase the number of iPhones being manufactured this year, Business Standard reported.
Samsung is also looking to exit the high-volume feature phone market in India. The company will now focus on launching smartphones above Rs 15,000, as per a report by ET Telecom. The move is in line with the Production-Linked Incentive (PLI) scheme introduced by the government, which requires a company to manufacture phones at a minimum factory value of Rs 15,000 to be eligible to get the benefits.
Samsung may cut smartphone production by 30 million units this year - CNBCTV18
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