A South Korean media outlet wrote that Samsung plans to reduce phone production by 10% this year. Inflation and the Russia-Ukraine war were cited as the reason for this decision.
Problems such as the recent chip crisis, war and pandemic had negatively affected technology giants around the world. The smartphone industry was also among those affected. South Korea-based company Samsung showed the best performance of the last five years in the first quarter of the year; however, we have shared with you that the overall shipments have decreased.
Now, new information has come about the company, which recently announced that it plans to invest 355 billion dollars in the chip crisis. It was revealed that the technology giant, which was affected by the problems experienced in this news, plans to reduce its smartphone production by 10% this year.
High inflation and the Russia-Ukraine war caused the decision
According to the report, which is based on a source in the supply chain of the giant company, by the media organization Maeil Business News in South Korea, Samsung has reduced its smartphone production expectation by 10% this year. The company initially plans to ship 310 million shipments by the end of the year; however, it was stated that this number was reduced to 280 million. It was also stated that Park Hyung-woo, a senior analyst at investment firm Shinhan Investment, plans to reduce production by 35% in May and another 10% in the second quarter, compared to the company’s average production from January to April.
According to Maeil Business News, the main reasons behind this decline are high inflation and Russia’s invasion of Ukraine. Still, the drop in production to 280 million means that the leading company will still produce more phones than the previous year (270 million).