Samsung Reduces Smartphone Production by $30 Million Due To Weak Sales
By Reports say that Samsung took the decision to do so after its sales slumped due to the Covid pandemic in the last two years, along with the Russia-Ukraine conflicts.
Key Points:
- Korean smartphone maker Samsung to scale down its production by $30 million due to weak sales over the past two years.
- Samsung states the Covid pandemic and the ongoing Russia-Ukraine war as the two main reasons for low sales.
- The global shortage of semiconductors due to the Covid pandemic is one of the main reasons for this decision.
Korean smartphone makers Samsung announced on Wednesday, 4 August 2022, that they are currently planning to scale down the production of their smartphones. They stated that due to poor sales of Samsung smartphones in the last two years, they have decided to lower production by approximately $30 million.
Two primary reasons were given for this decision to scale down production. The first reason is the effect of the Covid pandemic on the production of gadgets and smartphones. The pandemic caused a worldwide shortage of semiconductors, one of the primary components of the motherboard of smartphones.
The covid pandemic has also made people save more and spend less, owing to the overall fewer sales of almost every technological product, from Samsung smartphones, television sets, and even refrigerators.
According to Samsung, the second big reason to lower production is the ongoing Ukraine-Russia war. This has reduced a lot of spending on technology and many European countries.
The company plans to reduce the work hours of its employees in manufacturing in Vietnam, where more than half of all Samsung smartphones are produced. Instead of working six days a week, the workers are now expected to work three or four days a week and reduce overall production.
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