Samsung is reportedly slashing the number of phones it plans to produce by 2022 from 310 million to 280 million. SamMobileciting a report from a Korean outlet Business news from Maeil† In absolute terms, that’s still quite a lot of phones, but it’s a relatively sharp drop from the company’s original goal (and the reported number of phones it and its partners produced last year). There seems to be a trend for manufacturers to prepare for a deterioration in the economy before it gets better.
It is rumored that the reduced production targets will affect phones across the range, from low-end models to flagships. In a way, cutting production of its cheaper phones sounds counterintuitive — wouldn’t more people turn to those phones during an economic downturn? But it follows when you consider that the alternative is just not buying a phone at all; people looking for low-end phones may not want to buy new ones unless they absolutely have to, and those who have high-end phones might be better off keeping them for an extra year or two.
Samsung is not alone in feeling the effects of an ongoing pandemic, the war between Russia and Ukraine (which has led the company, along with many others, to halt deliveries to Russia) and ever-rising inflation. Apple is reportedly expecting relatively stagnant sales this year as well, as it plans to produce roughly the same number of phones it will have in 2021, despite likely working on some pretty major upgrades.