Not everything is good in smartphone land. The industry was headed for a slowdown long before SARS-CoV-2 came into the picture. The glory days of growing markets and semiannual upgrades are seemingly coming to an end, and things have only been compounded by two years of financial hardship and supply chain constraints.
For all these reasons, it is not surprising that manufacturers are withdrawing production. According to a new report from South Korea’s Maeil Business News, the world’s largest smartphone maker has cut production by 30 million units by 2022. The news comes as sales are further hampered by the conflict in Ukraine. In March, the company followed fellow tech giants Microsoft and Apple by suspending sales in Russia.
Apple has also felt the pain. Recent Bloomberg reports noted that the iPhone maker is throttling plans to produce another 20 million phones by 2022. Instead, the number will reportedly remain the same from 2021. Those reports track several quarters of iPhone sales that had managed to support many of the industry’s macro trends, but the company may be coming back to Earth even with the imminent arrival of the iPhone 14.
It’s a perfect storm of industry and global factors that brought us to this place. It’s not a panic time for the bigger manufacturers – they will almost certainly come out of the dip unscathed. But there are broader questions about the future of the industry. Most important of all is whether this is a lull after a decade of explosive smartphone sales, or whether even the advent of new technologies like foldable screens will herald a return to the mobile golden age.
Samsung declined to comment on the messages.
This post Samsung reportedly cut smartphone production by 30 million – TechCrunch was original published at “https://techcrunch.com/2022/05/28/samsung-reportedly-cutting-smartphone-production-by-30m/”