The market effects of the pandemic are diminishing. But new problems continue to emerge, complicating things for smartphone manufacturers. According to TheElec’s report, this has forced Samsung to reevaluate its production strategy for this year.
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Rising inflation lowers Samsung’s smartphone shipment target below 2021 level
Samsung’s original target for this year was 334 million smartphone shipments. Of that number, 284 million would be made by Samsung at its own facilities, and the remaining 50 million would be left to its partner ODMs. However, the company reduced this number to 264 million and announced that its production target for October and November is 34 million. In addition, the company said that 34 million is much less than the target during these periods.
Although Samsung had a weak 2020 due to the pandemic, it produced 300 million smartphones in 2020 and shipped 270 million of them. That is about 10 million more than the target for this year. Sources point to rising inflation, lower consumer demand and supply chain problems for targets lowered this year.
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