According to a report by the Korean website Maeil Economic Daily, Samsung has cut down its production forecasts for 2022 by 30 million, and will now produce 280 million smartphones compared to the previously planned 310 million devices this year (via 9to5Google).
A steady rise in inflation has been cited by the South Korean tech giant as one of the key reasons for cutting down on its production targets for the year. Moreover, the ongoing shortage of chips and other components continues to affect everyone and is also limiting the production of smartphones.
Samsung captured 24% of the global smartphone market last month, the company’s highest Q1 performance in more than 5 years. However, this number was recorded as smartphone shipments saw an 11% year-over-year fall.
We estimate Samsung shipped 75 million smartphones and topped the global smartphone market with a healthy 24% share in Q1 2022. It is the vendor’s highest first quarter performance by market share since 2017. Demand was strong for the newly launched flagship Galaxy S22 series, especially the higher-priced S22 Ultra model.
Last week, Bloomberg reported that Apple now plans to produce 220 million iPhones in 2022, compared to market forecasts of nearly 240 million units.