As the smartphone market continues to decline, Samsung is said to have slashed output

As the latest indication that the mobile sector is being impacted by broader economic concerns, Samsung has allegedly reduced its smartphone output for this year by 30 million units.

Korea’s Maeil Business News states that the corporation has lowered its orders from 280 million to 310 million, with the reductions impacting its whole portfolio.

In addition to its high-end models, including as the Galaxy S, Flip, and Fold lines, also covers the lower-end devices.

Sales of smartphones

If verified, Samsung’s decision to halt manufacturing would be the latest sign of a possible economic slump.

Retailers shutting down their doors and customers delaying purchases caused a 12.5% drop in smartphone sales during 2020. The reopening of marketplaces and the increased accessibility to affordable 5G devices led to a 6.5% rise in 2021.

However, China’s continuous supply chain disruptions, component shortages, and lockdowns have put any future expansion in jeopardy.

These problems have been exacerbated by global macroeconomic and geopolitical reasons, with the mobile sector concerned that customers may delay or cancel purchases of smartphones.

In a statement released last week, Qualcomm indicated that it expected the premium sector to be more resilient to market problems compared to the lower end of the market. Apple, on the other hand, apparently plans to maintain its 2022 production level at roughly 220 million units despite solely manufacturing high-end smartphones.

Some positive news may be found on the horizon, though. The second half of 2022 is expected to be a more favourable time for all manufacturers, according to industry experts.