The Tech industry faced a shortage of chipsets past COVID. As almost every industry induced a loss in that phase. More on, Russia’s invasion of Ukraine worsen the situation and interrupted the supply chain. Therefore, companies like Samsung are short of chipsets. And, this made the company reduce production this year. Samsung is cutting down on smartphone production.
Last year, Samsung’s production was about 310 million units. But this year the company is planning to ship 280 million units. Samsung informed its production partners and distributers about the plan.
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According to the reports, the South-Korean company said that they would need to reduce their production by 35% if the Russia-Ukraine problem continues. Also, if the global chain isn’t maintained and taken into the order, the company would have to face a loss in revenue.
The major reason behind this tough decision is the raw materials and other supplies. Due to the Russia and Ukraine conflict, the supply chain is disrupted and inflation is high globally. The raw material that is required is not available easily due to these affairs. Thus, it compelled the company for doing so.
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However, if the material is available, then the cost is too high for Samsung. Neither does it take on itself, nor it can pass it to the customers. Apple also reported producing 220 million iPhones this year. While the last year, it was around 240 million units.
While this cannot determine the growth of the company. The new foldable screen technology and under-display cameras might uplift the company through this.