Samsung lowered its smartphone shipment target for this year

It was reported in June this year that Samsung had cut orders for 30 million smartphones and set its target shipments for this year at 270 million units, while the inventory was nearly 50 million units, accounting for about 18%. Normally, it should be controlled within 10% to be considered healthy. Due to high inventory levels, Samsung slashed smartphone production, from an average of 20 million smartphones a month at the beginning of the year, to 10 million in May.

Galaxy Z Fold 4 camera

According to The Elec, Samsung originally planned to produce 334 million smartphones this year, with an expected shipment of 300 million units but has gradually lowered its shipment target over time. According to the latest news, Samsung has set a new target of 260 million units. Even if it can be finally achieved, it will be lower than the shipments in 2021 (about 270 million units).
Previously, the largest drop in Samsung smartphone shipments occurred in 2020. Due to the impact of the COVID-19 epidemic, the shipments in that year were about 250 million units. In the earlier years, the annual shipments could be maintained at more than 300 million units. Samsung originally planned to restore shipments in 2022 to the level before 2020. Of the 334 million units in the original plan, 284 million units were produced by its own factories, and the remaining 50 million units were handed over to Chinese partner manufacturers.

Now the COVID-19 epidemic, inflation, supply chain problems, and the global economic downturn have greatly reduced the demand for smartphones in the smartphone market, forcing Samsung to readjust its plans. The only smartphone maker unaffected so far is Apple, whose target shipments for the upcoming iPhone 14 series remain at the same level as last year’s iPhone 13 series.