The last few years have been completely making the world economy chaos. First, there is Pandemi Covid-19, which affects many businesses and consumer purchasing power. Then there is a lack of global semiconductors that hit any industry that utilizes processors and chips – that is, almost all things that have electronics in it, including cars. While this unfavorable condition most influences small businesses, it is really just a matter of time before a larger company feels the effect as well. Proves that nothing is immune, Samsung is now reportedly reducing some time smartphone production in one of its factories to adjust weaker demand and sales, a step that can affect business and other employees on the telephone.
Pandemic consumer spending patterns such as riding a roller coaster. At the beginning of the outbreak, people rush to buy computers and smartphones to get ready at home for a long time. At the same time, producers cannot quickly supply requests because the factory is closed to the left and right. With many of the restrictions revoked, many people make purchases that cause sales soaring. However, the leap is short -lived, especially with semiconductor deficiencies that force many industries to be more conservative with their supply. Fortunately, things -more or less have been settled now, but that also, also has a negative effect on business. People now buy fewer goods when the economy tries to recover, which means that the warehouse has accumulated inventory that collects dust.
Production scales down as consumers narrow their spending
Products that are not sold, of course, loss of money, and producers must provide compensation with one way or another. Reuters reported that in the case of Samsung, the company increased production in Vietnam in one of its main smartphone factories. Workers reveal that they will work three or four days a week, not six days as usual. Although a low season is often expected during June or July, things are described by one worker as “warm” and worse this time.
To put it in the context, Vietnam is from where almost half of the production of Samsung smartphones originated. Significant reduction in production times like this will have a big impact on Samsung output and work. Factory managers reportedly explained that high supplies and low orders, creating a very unfavorable situation. If this remains, there may be layoffs, at least in Vietnam. The report could not verify whether Samsung only shifted part of its production burden to other factories in India and South Korea.
Not surprisingly, Samsung has not commented on plans to reduce its annual production output in Vietnam – in fact, he remains optimistic about the numbers for the second half of this year, according to Reuters, even if that means that demand will only be flat or up in one digit. The company even puts many of its eggs in a folding basket, reportedly increasing the production of the Galaxy Z Fold 4 and Z Flip 4 years compared to its predecessor – although it may not have the same optimism about the fold 5 model. It does not immediately mean that the cellphone that can be folded this year will really sell and Samsung hopes they will do it.
