Like Apple, Samsung has decided to revise its smartphone sales targets for the year 2022, the fault of rising prices caused by inflation and the difficulties on the production chain caused by the pandemic.
As you may have read in our columns this Friday, May 27, 2022, several manufacturers have decided to take measures in the face of rising global inflation, generated in particular by the conflict in Ukraine. This is, for example, the case of Apple, which expects to sell 20 million fewer iPhones than expected in 2022, due to the shortage of chips, inflation and difficulties on the production line caused by the Covid-19 pandemic.
However, and according to several South Korean media, Samsung is also preparing to revise its smartphone sales targets downwards for the rest of the year. According to several internal memos relayed by our colleagues, the firm has reduce its annual estimates by 10%with a target now set at 270 million units sold against 300 million previously.
The documents also suggest that the manufacturer intends to reduce production of all of its smartphones, and not a specific market sector. In other words, Samsung will produce fewer entry-level smartphones, mid-range ones, flagships and not to mention foldable devices.
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Samsung lowers targets due to inflation
Bad news for Samsung, which hoped double shipments of its foldable smartphones in 2022 (to reach 14 million sales). It must be said that the company recorded an exceptional year 2021 in this market sector. In effect, Samsung sold 7.1 million foldable devices last yearincluding 4.6 million Galaxy Z Flip 3. A historic record for the brand, which consolidates its leading position in the foldable smartphone market.
This change in strategy comes as Samsung had just announced record profits for the first quarter of 2022. Exceptional performance due in particular to the very good sales of the Galaxy S22, but also… to the shortage of electronic chips.
Indeed and as one of world’s leading memory chip suppliers, Samsung took advantage of the current situation to increase its prices. As a result, the manufacturer’s semiconductor division posted impressive results, with 6 billion euros of profit alone in the 1st quarter of 2022.
Source: MK.co via Android Headlines