Reports say Samsung plans to cut smartphone shipments next year by 13%

Samsung plans to reduce smartphone shipments by 13

Samsung plans to reduce smartphone shipments by 13%

Due to a number of factors, including the supply chain problem of COVID-19 and the dismal economic outlook in many countries, Samsung, the world’s largest smartphone maker for years, has not been able to sell as many smartphone units as it expected.
Almost all companies have been affected by the decline in smartphone shipments around the world, and the South Korean tech giant is no exception. According to a recent article from Taiwan Economic Daily (via ITHome), the company intends to reduce the number of smartphones it ships next year.

According to the report, Samsung intends to reduce smartphone shipments in 2023 by 13%, or about 30 million phones. This is mostly due to the collapse of the smartphone market, which prevents the company from selling as many devices as it had hoped and leads to continued weak demand in the market.

Samsung saw an overall decrease of about 8% year-over-year, despite its ability to increase its market share in terms of shipments for the third quarter of this year (2022) compared to the previous quarter (Q2 2022).

It’s not just Samsung that is pessimistic about the state of the market. The same sentiments are also shared by many smartphone component manufacturers, such as Japan’s Murata, Yageo, Tongxin Electric, and Taiwan’s Duntai.
Murata, the leader in MLCC (Multilayer Ceramic Capacitors), which provides electronic modules and parts for Samsung and Apple smartphones among others, has issued a warning that smartphone demand in Greater China will show no signs of improvement and will instead continue to . Fall next year.

Mobile sensor component supplier Tongxin Electric stated that stock removal could take two to three quarters longer. According to the enterprise, related work will be resumed in the second quarter of next year or at the end of the third quarter.