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 Samsung cuts phone production for 2022

Samsung has decided to reduce the number of phones it plans to produce in 2022, from 310 million to 280 million.

And that's still a very large number of phones in absolute terms. But it represents a relatively sharp drop from the company's original goal. It also represents a decrease in the number of phones reported that the company and its partners have produced in the past year.

The company initially aimed to produce 300 million units in 2022 as it has not yet reached this number after 2017. However, the global economic situation has affected demand.

The global economic recovery after the pandemic has been slower than expected. This has required companies to lower their expectations as inflationary pressures are forcing customers to be more careful with their finances. The current situation between Russia and Ukraine is also not helping.

And the South Korean giant appears not to be immune to these dynamics either. The company has to adapt to these challenges as it seeks to achieve growth in the smartphone market.

Samsung's lower production targets affect all of its phone lineup, from budget models to flagship phones.

Samsung follows Apple's lead

Although reducing the production of cheaper phones seems illogical because more people may turn to these types of phones during the economic downturn. But it makes sense when you consider that the alternative is not to buy a phone.

People who own low-cost phones may not want to buy a new phone unless they have to. Those with high-end phones will probably be better off keeping them for an additional year or two.

Inflation has reached its highest levels in major markets around the world. Market analysts expect this to be a major reason why sales of affordable devices have declined this year as well.

It appears that there may be a tendency for manufacturers to prepare for the economy to worsen before it gets better. Other companies have taken similar steps in the face of this difficult economic environment.

Reportedly, Apple is expecting a relative slump in sales this year. As a result, it plans to produce roughly the same number of phones as it did in 2021, despite the fact that it's likely working on some pretty big upgrades.