Samsung is cutting its phones production

According to SamMobile, Samsung is cutting the production it has planned for 2022 from 310 million to 280 million.

There is a possibility that it is because of the trend of manufacturers preparing for the economy to get worse before it gets better.

This decision of decreasing production will put adverse effects on the phones across its lineup from low-end models to flagship.

This strategy of cutting the production of affordable phones is counter-intuitive, would not more people would prefer to turn to those during the economic downtown?

Production of the phones became comparatively difficult in the wake of the ongoing war between Ukraine and Russia which resulted in halting shipments to Russia and ever-increasing inflation.

It is not only Samsung that has been affected but there is also a significant decrease in the production of many other companies because of the challenging economic environment.

Initially, Samsung planned to produce 300 million units in 2022 but the deteriorating global economic situation has largely decreased the demand and the company reacted to it, the report says.

Apple is also expecting relatively fewer sales this year and is planning to produce the same number of phones it produced in 2021.

Francis Kahn

Francis Kahn is a freelance journalist who joined ratedviral.com recently. With an eye for spotting interesting news bits, he composes raw materials in short bites, ensuring that whatever will be published on the website is important and well-curated

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