As worldwide demand for smartphones declines, Samsung has reduced production. According to reports, the Korean behemoths smartphone facility in Vietnam’s Thai Nguyen Province is producing less product than it should. Over 100 million smartphone devices can be produced on the property each year. There is a second Samsung campus for mobile devices in the nation. The two factories work together to produce half of the company’s annual smartphone output.

AS SALES DECLINE, SAMSUNG REDUCES SMARTPHONE PRODUCTION Samsung has reportedly had to reduce its smartphone production due to a global downturn in consumer purchasing, according to Reuters report . The COVID-19 lockdowns sent individuals on a months-long purchasing binge, and major shops like Target and Best Buy have warned of a mounting inventory as people have started checking on their expenses. 2021 and the beginning of 2022 saw a rise in the smartphone market.

However, the industry has been struck hard once more by causes including the Russian invasion of Ukraine and soaring prices, with financial analysts predicting a possible worldwide recession. Inventory levels are rising quickly as fewer consumers are actively shopping. A few months ago, reports claimed that Samsung’s global distributors and retailers have an unsold stockpile of more than 50 million handsets. It makes sense why production is declining.

Advertisement According to some employees at Samsung’s Thai Nguyen factory who spoke with Reuters, business is worse than it was a year ago. Some production lines are only being used four days a week by the company, as opposed to six during regular business hours. Some workers just require three days of employment every week. Although economic activity often declines between June and July, the number of working days is never reduced.

Samsung is nonetheless confident that things will get better in the upcoming weeks. According to reports, it anticipates that Vietnam’s overall annual output volume would remain at the same level. It’s unclear if the business intends to boost output at the other site.

Samsung has already revised its sales target for smartphones. Samsung has already lowered its 2022 smartphone sales forecast by 10%. In line with last year, it now anticipates selling about 270 million cellphones this year. The company’s initial goal for sales was 300 million units. Time will tell if the company can hit the new goal. The Galaxy Z Fold 4 and Galaxy Z Flip 4 foldables have great promise for it. On August 10, the new foldables and the Galaxy Watch 5 series smartwatches go on sale.

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