Samsung cuts smartphone production, Apple doesn't

"Apple has been the only company so far seemingly unaffected by the situation among smartphone makers like Samsung."

From Gjong Lee's "Samsung drops smartphone shipment goal for 2022" posted last month by TheElec:

Samsung has dropped its smartphone shipment target for 2022 from the previous 300 million units to 260 million units, TheElec has learned.

Earlier in the year, the South Korean tech giant had planned to manufacture a total of 334 million units of smartphones with the goal of shipping around 300 million units of them.

Samsung concluded 2021 with a total annual shipment of 270 million units, so its new goal for 2022 is less than that even if it successfully meets the goal.

The company’s biggest dip in smartphone shipment came in 2020 due to the pandemic and it shipped 250 million units that year.

In prior years, it more or less always shipped more than 300 million units per year...

Apple has been the only company so far seemingly unaffected by the situation among smartphone makers like Samsung.

My take: Old news story, but new to me.

15 Comments

  1. Fred Stein said:
    So much for the Flip and Fold being game changers.

    2
    September 22, 2022
  2. Jacob Feenstra said:
    Might not be Flip and Fold but Flip and Flop.

    11
    September 22, 2022
    • Robert Stack said:
      Or as Kenny Rogers sang:
      You gotta know when to hold ’em
      Know when to Fold ’em
      Know when to walk away
      And know when to run

      8
      September 22, 2022
  3. Daniel Epstein said:
    Timing is everything! If this was written before Apple had even announced the new phones then it makes sense the iPhone manufacturer hadn’t changed its order goals. This also might mean the strength of the 13 iPhone cycle was impressive.

    3
    September 22, 2022
    • Gregg Thurman said:
      Wouldn’t it be something if “beleaguered” Apple shipped more smartphones than copycat Samsung.

      4
      September 22, 2022
  4. Michael Goldfeder said:
    Green bubbles don’t matter.

    6
    September 22, 2022
  5. Bart Yee said:
    This is curious to me:
    “Earlier in the year, the South Korean tech giant had planned to manufacture a total of 334 million units of smartphones with the goal of shipping around 300 million units of them.”
    So does this mean about 90% yield from assembly factories? Keep 10% (33M) units for replacement, warranty, or special demand, parts?

    And then if shipping 260M is new goal, do they make about 286M total?

    3
    September 22, 2022
  6. Bart Yee said:
    Also these key points from the article:
    “Out of the 334 million units it had planned to manufacture this year, 284 million units would have been manufactured in its own facilities while 50 million units were to be given to its joint development manufacturers in China.”
    “The South Korean tech giant is planning to manufacture 34 million units of smartphones on its own between October and November, sources said, far less than prior quarters and the same time period years ago.“

    This, along with comments from Samsung’s Q2 earnings report, suggests they see 2H22 deteriorating due to effects of global smartphone market slowdown plus continued macroeconomic headwinds despite S. Korean won forex tailwinds. I’m inclined to think there’s cost cutting and Korean & Chinese ODM factory cutbacks while Vietnamese and India factories remain relatively untouched.

    0
    September 22, 2022
  7. Bart Yee said:
    IMO, there is strong possibility Apple will trail Samsung by only 25M unit sales, 230M to 255M respectively. Of course, Apple iPhone revenue FAR surpasses Samsung Mobile revenue by $153B USD vs $61.9B or 2.5X for trailing 9 months period. CY Q2 2022 Apple FY2022 Q3 iPhone revenue was $40.7B USD vs Samsung Mobile’s $19.9B USD.

    We will know in about 10-14 days if Samsung’s Mobile (MX) division will be a plus or minus to their overall quarterly revenue. Samsung would be including initial Flip and Fold revenue of about 6 weeks of sales (intro Aug. 10, release Aug. 26) as would Apple’s 2.5 weeks of iPhone 14 sales. Last year Samsung Mobile Q3 2021 revenue was $19.5B USD vs Apple FY Q4 revenue of $38.9B or 1.99X.

    2
    September 22, 2022
  8. Steven Philips said:
    A bit OT, but I was thinking yesterday – after reading that just about every tech company was laying workers off – that it would be fun if – just to mess with “analyst’s” heads – if Apple hired a bunch of workers whether they needed them or not!

    3
    September 22, 2022

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