COVID-19 causes problems in the economy worldwide. Now Samsung is also reducing its smartphone production. The demand is said to have been quite stable until March despite the pandemic. In April, demand has also fallen sharply in the USA and Europe due to the strong spread of the virus. According to ET News, Samsung has consequently reduced its orders for smartphone components by up to 50 percent. This affects both entry-level and mid-range devices and high-end smartphones such as the Samsung Galaxy S20 Ultra.
According to a component supplier, fewer devices are likely to be produced in the entire second quarter than in one month in the first quarter of 2020. Samsung also plans to produce much shorter-term than usual. Production quantities are planned no more than six weeks in advance to allow for a faster response to changes. Another report states that Samsung is currently producing only ten million smartphones per month, instead of the 25 million it has been producing so far.
