Strange but true; Low sales forced Samsung to reduce the production of the phone

As it seems, Samsung has been forced to reduce the amount of production due to the decrease in demand for smartphones.

BingMag.com Strange but true; Low sales forced Samsung to reduce the production of the phone

As it seems, Samsung has been forced to reduce the amount of production due to the decrease in demand for smartphones.

Companies with increasing demand in During the Corona era, they were happy, but in the end they realized that the situation was not at all what they thought. One of these companies was Samsung, which we heard earlier has more than 50 million phones in its warehouse, but no one is eager to buy them. Samsung's problem is not limited to these things. In general, the Korean company is in a relatively bad situation in terms of smartphone sales, and this has caused it to significantly reduce its production. In a situation where all companies active in the field of smartphone production feel a heavy economic recession, the largest mobile phone manufacturer was not an exception to the rule and faced problems. In the second half of this year, it will either remain constant or become a single digit. But apparently the situation is worse than what the company itself thought. In Vietnam, where the largest Samsung phone assembly companies are located, Samsung has had to significantly reduce its production. In general, two large companies operate in this country, which produce half of the Samsung phones that are sold all over the world.

BingMag.com Strange but true; Low sales forced Samsung to reduce the production of the phone

Some workers in this complex have claimed that they only work three days in a week. This is despite the fact that earlier this amount reached six days in a week. In some lines, workers only work four days in a week, and this is not a good sign at all. Of course, according to the Reuters news agency, this reduction in working time may be due to the fact that Samsung is shifting its attention to countries such as India and South Korea. It means that he is investing in these countries so that he can take part of the amount of production into them. This issue can also greatly affect the reduction of production in Vietnam.

Will Samsung have a bad situation in the second half of this year in selling phones?

It can be said that almost all the assembly lines who are currently working in Vietnam, they are not doing well at all. This is a report that Reuters published after interviewing these companies, and it is not a prediction based on speculation at all. It was this time last year when the production of phones was at its highest level, but now the situation has become such that the employees themselves say that they have never seen the business sleeping to this extent. Maybe even layoffs will happen, although no news has been published yet.

Many big companies such as Best Buy, Kano, Clubhouse, Coinbase, Microsoft, Netflix, PayPal, Robinhood, Substack, Tesla, Tik Tok and Twitter have already retrenched, and companies such as Google and Facebook are also trying to do the same. Now it remains to be seen how the situation will progress for the largest phone manufacturing company in the world.

Source: SamMobile

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