The market effects of the pandemic may lessen, but new problems have emerged that are complicating things for smartphone makers. This forced Samsung to reassess its manufacturing strategy for this year, it reports The Elec.
According to the publication, the original production target was 334 million smartphones (Samsung would have made 284 million in its own facilities, leaving the remaining 50 million to its ODM partners).
Of these, the plan was to ship 300 million units. However, the company has reportedly revised that number down to 260 million and reduced its production target for October and November to 34 million units, far less than usual for the period, insiders say.
For comparison, Samsung had a weak 2020 due to the pandemic and shipped 250 million smartphones during the year. In 2020 it produced 300 million units and shipped 270 million (10 million more than the new target this year).
Sources point to rising inflation, falling consumer demand, and supply chain problems for this year’s reduced targets.
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