Naturally, manufacturers must make up the lost revenue from unsold goods in some way. According to Reuters , Samsung is cutting back on output at one of its main smartphone plants in Vietnam. Employees disclose that they will work three or four days a week rather than the customary six. Although a low season is frequently anticipated in June or July, one employee claims that this time around was particularly “tepid.”

To put things in perspective, over half of Samsung’s smartphone manufacture is sourced from Vietnam. This kind of substantial shortening of the production period will have a huge effect on Samsung’s output as well as employment. According to reports, plant managers explained that the situation was extremely unprofitable because inventories were high and orders were low. Layoffs may occur if this continues, at least in Vietnam. However, the source was unable to confirm whether Samsung has simply moved some of its manufacturing burden to its other sites in South Korea and India.

Unsurprisingly, Samsung has not commented on proposals to lower its annual production output in Vietnam. In fact, the company, according to Reuters, is still optimistic about its projections for the second half of the year, even if it means that demand will only be flat or rise by a modest percentage. The business is even reportedly raising manufacturing of the Galaxy Z Fold 4 and Z Flip 4 this year compared to those models’ predecessors, even though it may not be as optimistic about the Fold 5 model. Additionally, it does not automatically imply that sales of this year’s foldable phones will be as strong as Samsung anticipates, nor does it account for the probable decline in other smartphone market sectors.


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