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Ukraine war: Samsung, Apple to cut smartphone production for 2022

by Agency Report
May 30, 2022
in Gadgets
Reading Time: 1 min read
Ukraine war: Samsung, Apple to cut smartphone production for 2022

FILE

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South Korean and American phone manufacturers, Samsung and Apple are cutting their phone production for the year.

The slash in production is coming amid high global inflation and the ongoing Russia-Ukraine war which has forced demand to decrease.

While Apple cuts production at low to mid-range prices, Samsung Electronics is said to have cut production not only for mid-to low-end models but also for flagship (high-priced mobile phone) models.

Apple’s earlier decision to cut its production of iPhone SE in March by 20% was not only due to the low demand but also problems with inbound logistics as the supply of parts was being disrupted.

The Korean Report on the Samsung Mobile website says that Samsung had initially planned to produce 310 million units but that has been reduced to 280 units representing a production downsize of 10%.

However, the Electronic company has announced to parts makers that it intends to restore the reduced order volume when a new foldable smartphone is released in the second half of this year.

Downsizing is a coping strategy often employed by companies in the face of global economic situations.

Tags: AppleRussia-Ukraine warSamsungSmartphones
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