Samsung only produces 3 days a week
Samsung already has tens of millions of smartphones in its warehouses and at dealers, who are slow to sell due to the reduced demand. The company has therefore cut production at its main locations for over a month. The portal, VietnamNet reported that Samsung has sharply reduced production volumes at its Vietnamese factories, although this has been the case since early June and is unlikely to change again in the near future. The two gigantic factories in Vietnam currently produce at most half their usual quantities.
Overproduction can lead to losses
Production ran five days a week until early June but has now been running just three days a week at Samsung’s factories in Vietnam for more than four weeks. In this way, the group aims to avoid a further increase in inventories and losses that would be at risk from falling prices in sales. According to the report, there are currently about 50 million smartphones in stock at retailers, distributors, and Samsung itself. It is, of course, anything but unusual for some of the equipment produced to be in storage, but normally this is only about ten percent of production quantities.
Currently, however, the amount of stored equipment is about double. According to industry sources, Samsung has already significantly reduced its planned production volumes for 2022. If it was previously assumed that more than 330 million units had been sold, it is now only about 270 million units. This development is anything but positive for Vietnam, after all, several jobs are being lost and the desired growth of the communist country is being pushed back.
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