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TAP TIMES -20- OCTOBER 2022
Global smartphone production by 16.3% QoQ to 61.8 million units. Look-
falls 6% in first half of 2022 ing to the third quarter, Samsung is still
focusing on the adjustment of distribu-
TAIPEI, Taiwan — According to Trend- tion channel inventory and, as the outlook
Force investigations, 2H22 smart- remains conservative, total production in
phone production planning was quite 3Q22 is estimated to remain flat or trend
conservative as brands gave priority upward marginally compared to 2Q22.
to adjusting distribution channel in-
ventory. Aggressive investment
In recent years, due to Samsung’s aggres-
Weak market demand sive investment in the research and devel
At the same time, weak market demand in recent years, due to Samsung’s aggres-
worsened on the back of China’s pandemic sive investment in the research and devel-
controls and brands were forced to lower opment and marketing of folding devices,
their production targets. the company has successfully maintained
the popularity of these devices, and has
As a whole, production volume dropped also become the market leader in this seg-
6% in Q2, even though volume had always ment.
grown in previous second quarters.
Samsung will account for nearly 90% of
Global output was only roughly 292 mil- the 1.1% 2022 global smartphone market
lion units, a 5% annual decline compared share held by folding devices.
with the production performance in the
same period in 2021 when a second wave The second quarter is a transition period
of pandemic outbreaks occurred in South for Apple as it hands off old models for
Asia and Southeast Asia. new and is nominally the quarter with the
lowest production performance during the
As the primary vendor in Europe, Sam- year.
sung was forced to carry out a series of
inventory adjustments for finished prod- Kunshan and Shanghai lockdowns
ucts and components including large-scale Initial operational performance was af-
promotions and suspension of component fected in the second quarter by the imple-
procurement due to the impact of the mentation of lockdowns in Shanghai and
Russian-Ukrainian war. Thus, production Kunshan which hobbled the supply chain.
volume in 2Q22 was significantly reduced
The output shortfall created
during the lockdown period
was made up with produc-
tion capacity adjustment
after the lockdowns were
lifted.
Apple still produced 48.2
million units in 2Q22, rank-
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