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Samsung is currently the biggest smartphone vendor in the world right now, but it seems that despite being on top, the company isn’t immune to the effects of the market. If anything, they might actually feel it more keenly than others.
So much so that according to an exclusive report from Reuters, the company is scaling back its smartphone production over in Vietnam. Apparently this is due to the rise in inventory and also the global decline in consumer spending, meaning that Samsung doesn’t want to produce more units than they can sell.
This won’t just affect Samsung, but also Vietnam because the manufacturing bases in the country are where the company produces half of its smartphones, meaning that people working in those factories could potentially see their hours cut or maybe even laid off for the time-being.
According to one of the workers at the plant, the new working hours are just three days a week, while some lines are dropping from six to a four-day work week, and that there are no plans for overtime. It also seems that while the pandemic was still raging on in 2021, business was actually more robust.
Hopefully this is a temporary situation and that eventually Samsung will scale things back up again. The company will be officially announcing its brand new foldables next week, the Galaxy Z Fold 4 and Z Flip 4, successors to some of the best foldable smartphones from 2021, so maybe the new phones could help reignite demand again.
Source: Reuters
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