Electronics giant %Samsung () is cutting the number of %Smartphones it expects to manufacture this year by 10%, or 30 million units, citing lower global demand due to high inflation.
Samsung had estimated it would ship 310 million smartphones by year's end, but that number has now been reduced to 280 million phones, according to multiple media reports. Samsung will reduce its smartphone production by 35% now and another 10% later in the year, the company told reporters.
Samsung’s announcement follows %Apple (), which said last week that it plans to produce fewer iPhones than the 240 million it had initially forecast for this year, dropping its production target by 20 million units to the 220 million iPhones.
Apple cited a range of global factors impacting demand for phones, including geopolitical shifts, inflation, and exchange rate volatility, as well as component shortages that have plagued the technology industry since the COVID-19 pandemic erupted in 2020.
Samsung’s new target of 280 million smartphones would still be higher than the 270 million devices the South Korean company shipped last year, which was the most of any phone maker worldwide.
Samsung stock is down 14% year to date to 67,700 South Korean won, which is equivalent to $54.68 U.S. per share.