Report: Samsung lowers smartphone shipment target to below 2021 level

The market effects of the pandemic may be waning, but new issues have arisen that are complicating matters for smartphone makers. This has forced Samsung to reevaluate its production strategy for this year, reports TheElec.

According to the publication, the original manufacturing target was 334 million smartphones (Samsung was going to make 284 million in its own facilities, leaving the remaining 50 million to its partner ODMs).

Of those, the plan was to ship 300 million units. However, the company has reportedly revised that number down to 260 million and has slashed the manufacturing target for October and November to 34 million units, much less than usual for the period, claim insiders.

For comparison, Samsung had a weak 2020 due to the pandemic and shipped 250 million smartphones for the year. In 2020 it manufactured 300 million units and shipped 270 million of them (10 million more than the new target for this year).

Sources point the finger at rising inflation, lower consumer demand and supply chain issues for the reduced targets this year.

Source