According to jiwei.com, according to pulse, a Korean media, recently, due to high global inflation and the continuous interference of the war between Russia and Ukraine, Samsung Electronics plans to reduce its Smartphone Production this year by 10% According to supply chain sources, Samsung has sent a notice to parts suppliers to revise the annual output from 310million units to 280million units. In addition, shinhaninvestment recently issued a report that Samsung has reduced the expected smartphone shipment this year by 10% to 270Million units.
Park hyung woo, senior analyst of Xinhan investment, predicts that the output of Samsung Electronics in May will be 35% lower than the average monthly output from January to April, and the second quarter will be 10% lower than the previous quarter.
According to the above report, a parts supplier of Samsung Electronics has received a one month notice of order cutting. Although Samsung promised the supplier that it would make up for the lost orders when it released the new generation of folding mobile phones in the second half of the year, and increase the expected output of folding mobile phones from the original 1.3 million to 1.8 million, it is still less than 10% of the total output.
Not long ago, on April 28, Samsung Electronics said at the first quarter earnings conference that its operating revenue from the mobile phone manufacturing MX Department reached 3.8 trillion won (US $3billion), down 570billion won from a year ago, and the global smart phone market entered a downturn. Samsung also hoped for improvement, but it was shattered by the impact of the Russian Ukrainian war.
Two global mobile phone giants Apple And Samsung's production reduction will undoubtedly affect the global mobile phone sales this year. However, the sales target of 1.4 billion mobile phones last year will not meet expectations, which is also a heavy blow to suppliers.
At present, a parts supplier of Samsung Electronics has been notified to cut its parts orders worth one month.
Samsung Electronics has promised to make up for the losses through folding mobile phones in the second half of the year, and the relevant sales target of folding mobile phones will be revised from the initial 1.3 million to 1.8 million. However, foldable models account for less than 10% of Samsung's total sales of 270Million smart phones.
Parkjin Seok, an analyst at counterpointresearch, believes that the Russian Ukrainian war is the main reason for Samsung's production reduction. This conflict has seriously affected mobile phone sales in Eastern Europe. He also predicted that the global demand for affordable smartphones would be lower than last year.