Samsung is following in Apple’s footsteps with a large mobile phone production cut of its own

After being contracted in 2020 due to the abrupt start and devastating initial consequences of the coronavirus pandemic on the supply chain and global global customer demand, the smartphone market grew slightly last year but could not quite match (not only surpass) the sales figures recorded in 2020 .2019 … or 2018 … or 2017.

While the world’s top sellers of the phone have naturally entered 2022 with the expectation that both demand and production will finally return to the pre-pandemic levels of the mobile industry, all signs seem to be pointing in the opposite direction lately.
According to Canalys, Q1 smartphone shipments slipped 11 percent compared to the same period of 2021 “amid unfavorable economic conditions,” and at least for Apple and Samsung, the outlook for the rest of the year is certainly not rosy based on the recent rumors from parts suppliers, experts, and insiders.

Having trouble with the Galaxy S22 family?

Although this new Korean media report (translated here) in fact does not mention any Samsung devices by name, it is hard not to think first of all about the S22, S22 + and S22 Ultra, hearing that the company is cruelly cutting its product targets “not only for mid to low range. models but also for flagship (high-end mobile phone) models. “
At least for now, the three aforementioned Snapdragon 8 Gen 1 powers are the main representatives of the chaebol of the latter group, and while one of them has been widely used. regarded as a great commercial success shortly after its release, that initial popularity may have waned in recent weeks.

“Global high prices” and the Russian invasion of Ukraine are named as the two main causes of this rather serious crisis, which could be realized in about 30 million fewer Galaxy phones manufactured in 2022 compared to Samsungthe original purpose of.
While the tech giant obviously can’t do anything about the latter cause, the rapidly declining demand of recent months could explain the deeper and deeper recent price reductions of the Galaxy S22 Ultra.
The middle range Galaxy A53 5G is also cheaper than you might expect, and the same could soon be true even for the low end Galaxy A13. Of course, while we have no reason to doubt that this crisis is real and problematic for Samsung’s bottom line, its mobile phone production target for 2022 remains high, between 270 and 280 million units.

Nothing to worry about on the folding front

If this recently expanded range of 270 to 280 thousand ends up being realized, it is unfortunate to assume that Samsung’s actual sales numbers will decrease from the estimated total of 272M by 2021.

That’s because the market-leading brand probably has produced about 300 million smartphones Overall last year, so assuming that gap will remain largely unchanged, we can expect Samsung’s global shipping number to stand at about 245 million units in 2022.

A 10 percent drop in volume is undoubtedly bad, regardless of “unfavorable economic conditions,” Eastern European wars and a return of COVID-19 locking in Asia affecting the supply chain, but for what it’s worth, folding sales are still forecast to grow by. 13 to 18 million units.

In the grand scheme of things, the eventual success of this year Galaxy Z Flip 4 and Z-fold 4 it may not sound particularly effective … however, but in the long run, folding could become paramount to Samsung’s overall growth potential.
High-end folding devices could even help Samsung distinguish itself from Apple, which initially revised its production plans this year due to the low popularity of the mid-range iPhone SE 3 while reportedly looking at a problematic requirement for at least some members of the iPhone 14 family in the coming months. Basically, the problems of Samsung and Apple are similar but different, signaling however almost the same systemic challenges for the smart market as a whole.

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