Apple and Samsung forced to revise their smartphone production downwards in 2022

Apple has asked its subcontractors to assemble nearly 220 million iPhones this year, almost the same number of devices produced in 2021. For its part, Samsung has decided to revise its production target to 280 million. ‘units.

This year, Apple and Samsung will not produce more smartphones than in 2021. The two technological giants must adapt to a difficult economic climate marked by the shortage of electronic components, the rebound of the Covid-19 pandemic in China, the war in Ukraine and soaring global inflation. In this context, the American and South Korean groups have reduced their production forecasts for 2022.

Initially, Apple planned to manufacture around 240 million iPhones. The apple brand was betting in particular on the new version of its flagship product to boost its sales. But if the iPhone continues to be the locomotive of the Californian company, the latter must face supply problems, caused in particular by the “zero Covid” strategy of the Chinese authorities, with drastic confinements in several major cities. of the country and the closure of key factories for the electronics industry. According to the apple brand, these difficulties could cost it between 4 and 8 billion dollars over the period from April to June 2022.

20 million fewer units at Apple, 30 million at Samsung

Faced with a situation that affects both the global demand and supply of electronic equipment, Apple finally asked its partners to assemble nearly 220 million iPhones in 2022, almost the same number of devices produced in 2021, according to sources familiar with the matter cited by Bloomberg. In this context, Apple, which manufactures more than 90% of its products in China, has informed most of its subcontractors that it intends to strengthen its production outside the Middle Kingdom, according to the wall street journal. The Cupertino company would think in particular of India and Vietnam.

In the wake of Apple, Samsung plans to cut production of its smartphones by 30 million units for the current year, according to the South Korean media. Maeil Business News. Initially, the global market leader expected 310 million devices to be manufactured in 2022. But faced with the economic situation, the company decided to revise its production target to 280 million units, or around 10% less. compared to the original target.

Failing to put the package on smartphones, Samsung has decided to ramp up in semiconductors and biopharmaceuticals with an investment plan of nearly 360 billion dollars by 2026. As part of this plan five-year term, the South Korean group is committed to creating 80,000 jobs.

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