Samsung reportedly slashes smartphone production as slowdown continues

The Samsung Galaxy S21 series of phones lying face down.
(Image credit: Samsung)

Samsung has reportedly lowered its smartphone production for this year by 30 million, in the latest sign that wider economic issues are affecting the mobile industry.

A report by Korean publication Maeil Business News claims the company has reduced its orders from 280 million to 310 million, with the cutbacks affecting its entire portfolio.

This includes low-end models like the A series and its flagship handsets like the Galaxy S, Flip, and Fold ranges.

Samsung has been contacted by TechRadar Pro for comment.

Smartphone sales

If confirmed, the move to cut production at Samsung would provide the latest evidence of a potential slowdown.

Sales of smartphones slumped by 12.5% during 2020 as retailers closed their doors and consumers delayed purchases, while the reopening of marketplaces and the availability of 5G handsets at more price points contributed to a 6% increase in 2021.

However, ongoing challenges concerning component shortages, supply chain disruption and lockdowns in China have conspired to threaten any further growth.

These issues have been compounded by wider macroeconomic and geopolitical factors affected the global economy, with the mobile industry fearing that consumers might postpone or abandon smartphone purchases.

Last week, Qualcomm said it believed that the premium segment would be more immune to the challenges than the lower end of the market given typical buyers demand the latest technology. However, Apple, which only makes premium devices, has reportedly kept production flat at around 220 million for 2022.

There is some good news on the horizon, though. Industry observers believe the second half of 2022 will offer more favourable conditions to all manufacturers as the challenging conditions ease.

Via Maiel Business News

Steve McCaskill is TechRadar Pro's resident mobile industry expert, covering all aspects of the UK and global news, from operators to service providers and everything in between. He is a former editor of Silicon UK and journalist with over a decade's experience in the technology industry, writing about technology, in particular, telecoms, mobile and sports tech, sports, video games and media.