South Korea-based technology company Samsung has adjusted its production target in line with increasing global inflation and falling sales. Informing its suppliers last month, Samsung had reduced its 2022 target for smartphone production.
Samsung is reducing smartphone production on Vietnam-based factory
In total, Samsung aimsally aimed to produce around 310 million Galaxy smartphones in 2022. However, this target was later revised downward to 280 million. In other words, a total of 30 million Galaxy production was cancelled. According to the new information, Samsung has decided to reduce the production of smartphones in one of its most extensive facilities, the Vietnam-based facility.
Some workers at the aforementioned factory claimed that some of the production lines in the factory had moved from a six-day-a-week schedule to a three-day-a-week schedule. Almost all factory workers in Vietnam interviewed by Reuters claim that things are not going well. This time last year, smartphone production was reportedly at its peak. But things are looking different now. Some workers also state that smartphone production has never been this low.
The company, like many other electronics companies, is in serious plan changes due to global inflation, crisis, and other factors. In fact, the company does not limit the process only to the phone side. Samsung, which has notified more than one supplier in the past, requested that many parts used in electronic products among its product range be delayed and some of them reduced.
The firm does not want to have too many pieces left over because it has updated its sales targets. Because electronic parts that are not used in production and accumulate in warehouses cause damage to companies.
In addition to global inflation and the cost increase in logistics processes, it should be remembered that Samsung has finished the shipments to Russia, which occupied Ukraine. This means an inevitable decrease in the sales of the products.
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