Reportedly, it has been noticed that Samsung Electronics has scaled back production of its massive smartphone manufacturing plant in Vietnam, although the exact reason is not depicted yet. But it is said by Financial experts around the world that this has been the impact of a global slowdown.
Although the need for Portable devices is unexpectedly grown in the early stages of the coronavirus pandemic, now it likely seems to settle down.
At the same time, Samsung claimed that it expects smartphone sales to stay flat or achieve single-digit growth in the second half of the year. However, things seem to differ at its smartphone plant in Vietnam.
As per the exclusive report, released by Reuters claims that Samsung has cut smartphone production at its smartphone factory in Thai Nguyen. Noticeably this plant produces 100 million smartphones every year.
As per the Vietnam government, two plants in the country combinely the world’s largest smartphone units that produce half of its phone output.
Is Samsung predicting a fall in smartphone sales in the second half of 2022?
It has been found that various workers at the plant say that some production units are working just for three days a week which is six days earlier, while some lines are four days a week. It is also been said that Business activities are at a good pace during this time last year after the covid-19 outbreaks.
However, Reuters could not immediately make its notion out of it whether Samsung is shifting production to other manufacturing bases. And to step up this for reduced output from the Vietnamese factory. Noticeably, the company also makes phones in South Korea and India.
Also, Samsung told Reuters that it has not discussed of reduction in its annual production target in Vietnam.
Although, almost all factory workers who are interviewed by Reuters claim that the business performing well. Some workers claimed that they had never seen such a fall in smartphone production. To add to this, Job cuts could happen but at the same time, nothing has been announced yet.
Several other global brands include: Best Buy, Canoo, Clubhouse, Coinbase, Microsoft, Netflix, PayPal, Robinhood, Substack, Tesla, TikTok, Twitter, Vimeo, and Virgin Hyperloop, have announced job cuts. Other big giants like Facebook and Google, have also hinted at possible job cuts due to a decrease in consumer spending and a falling global economy.
The South Korean tech giant is relatively optimistic about smartphone demand in the second half of the year. The company also aiming for its foldable next-generation Galaxy Z Fold 4 and Flip 4 phone sales to surpass that of its past flagship smartphone, the Galaxy Note, in the second half. The unpacked event to unveil its latest foldable is on Aug. 10.