Samsung plans to reduce smartphone shipments By 13%

Samsung, the world’s leading smartphone maker for years, has not been able to sell as many smartphone units as it had planned because of several reasons, including the supply-chain issue caused by COVID-19 and the dull economic outlook in several countries.

As global smartphone shipments have declined, affecting almost all companies, the South Korean giant Samsung isn’t immune. A new report from Taiwan Economic Daily (via ITHome) claims that the company plans on reducing its smartphone shipments next year.

As per the report, Samsung is planning to reduce its smartphone shipments in the year 2023 by 13 percent, which roughly turns out to be 30 million units. This is mainly because of the decline in the smartphone market, because of which the company isn’t able to sell as many smartphones as it had planned, and the market continues to see weaker demand.

While Samsung was able to increase its market share in terms of shipments for the third quarter of this year (Q3 2022) compared to the previous quarter (Q2 2022), the company saw an overall decline of around eight percent when compared year-on-year.

It isn’t just Samsung that is bearish on the market situation. Some smartphone component suppliers, including Japan-based Murata and Taiwan-based Yageo, Tongxin Electic, and Duntai, among others, also share similar sentiments.

Murata, a leader in passive component MLCC (Multilayer Ceramic Capacitors), which provides electronic modules and components for Apple iPhone, Samsung smartphones, and others, has warned that smartphone demand in Greater China will not show signs of recovery and it will continue to see the decline next year.

Tongxin Electric, a mobile phone sensor component supplier, has said that it may need more than two to three quarters to destock. The company estimates that in the second quarter of next year or at the end of the third quarter, the related business of the company will rebound. GizmoChina