According to Samsung’s plans, the company lowered its smartphone shipment target in 2022, to 260 million units. Samsung strikes to retreat to its committed target to produce 340 million smartphones this year and ship nearly 300 million units. This seems a negative growth, that it’s lower than last year’s 270 million smartphone shipments even when the amended goal is achieved.
On the 15th of August. According to industry sources, it was understood that Samsung Electronics’ smartphone shipment target this year has been reduced to 260 million units. This is lower than Samsung Electronics’ smartphone shipments of 270 million units last year.
Samsung’s Smartphone shipments drop Covid-19
When in 2022, due to the first year of the spread of Covid-19, smartphone shipments drop to 250 million units. After it increase to 270 million units last year, Samsung Electronics set a goal of shipping close to 300 million units this year, the level of 2019. Samsung Electronics has set a plan to produce 333 million smartphones this year in the end. 288 million units were produced in-house and 50 million units were produced jointly (JDM) with Wingtech and Huaqin of China out of 334 million units.
January to November 2022. Samsung Electronics’ own smartphone production and production plans are added to the level of 190 million units. It is expected to be in the low 200 million units. The annual production volume was 210 million units in 2020 and 238.8 million units in 2021.
In the first quarter, Samsung Electronics produced 60 million smartphones and is known to have set up plans to produce 53 million units. In the second quarter and 47 million units in the third quarter around May. No matter how it is reported that smartphone production in the second quarter was only 48 million units. The production plan for the third quarter is 46 million units, which is similar to the previous target. However, the production line utilization rate is expected to be low as the 3Q volume is less than the 2Q, which is the off-season.
Smartphone shipment target
The reason arose why Samsung Electronics lowered its smartphone shipment target for this year. Due to the recent global economic uncertainty. This is more to see a result of reflecting the weakening of consumer sentiment. Considerable smartphone makers are experiencing major setbacks in their business plans for this year. Except for Apple, which has relatively solid iPhone shipments.
Although, the Company has no accumulated production plan for the fourth quarter. But it’s said Samsung Electronics has set a policy to produce 34 million units in two months from October to November two years ago. And 37 million units in October-November last year. In December, it will start production of the flagship smartphone Galaxy S23 series to be released early next year.
Samsung Electronics smartphone business setback is in contrast to Apple’s. After the U.S. government sanctions made Huawei’s smartphone business difficult, Apple dominated the global premium smartphone market. In the second quarter of the last year, Apple increased both iPhone shipments and market share compared to the same period last year. Which was the off-season and had many negative forecasts. Recently, there is also a forecast that the production of the iPhone 14 (tentative name) series. Which will be unveiled next month by Apple, will increase more than originally planned.
There is no possible battle is expected for Samsung Electronics. In the second half of the year, Galaxy Z Fold 4 and the Z Flip 4 are the two new premium smartphones. They still niche products with a penetration rate of less than 1% in the global smartphone market. According to Omdia market research, 11 million units of Samsung Electronics’ foldable phones will be shipped this year.
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