Samsung could drop smartphone production into low gear ahead of recession rut
The financial evidence of post-pandemic spending sprees seems to be dwindling as market analysts continue to forecast a worldwide recession. Although makers of thebest Android smartphonesare affected by consumer behavior changes, Samsung seemingly refuses to acknowledge the effects on its product range and production plans. However, a recent report based on details from insiders suggests dismal sales have forced the brand to quietly slash production ahead of an economic slowdown.
Although Samsung previously expected unwavering smartphone sales in H2 2022, an exclusiveReutersreport (viaSamMobile) claims a different story at the company’s two plants in Vietnam. Together, they produce half the company’s phones annually, with the Thai Nguyen location churning out 100 million devices a year on its own. However, interactions with several plant workers revealed that some production lines are running just three or four days a week instead of the usual six, while working overtime is out of the question.
If workers are to be believed, Samsung’s business could be slowing down. However, Reuters speculates the company could be offsetting the production shortfall with help from facilities in India and South Korea. The brand reportedly has no plans to ease annual production targets in Vietnam, though.
Workers in the Vietnam plant seem concerned about job and pay cuts too. Various big tech brands such asGoogleandMetahave slowed hiring, but others like Microsoft and Netflix haveslashed jobs, mostly blaming them on reduced consumer spending and the looming recession.
To some, the change in pace could be interpreted as Samsung’s preparation for tighter customer budgets for low and mid-range products. Itsrecently-released Q2 reportshows 12% profits, but following reports of budget-model stockpiling, the company couldfocus on high-end devicessuch as the Galaxy S-series and upcoming models such as theZ Fold 4andFlip 4. This move would help the companylock horns with Apple, retain market share until the recession blows over, and maintain handsome profit margins.
From faster storage to better speakers
Google’s made several improvements over the years
Carriers get the upper hand
Pixel 10 Pro XL charges faster wirelessly
Things get red hot for Magenta
Tablets and accessories are also on sale
