In 2020, most smartphones and tablets from major smartphone companies were unable to be sold due to the global pandemic during the year. The outbreak of the pandemic brought restrictions on the sale and distribution of these devices and many mobile companies have not been to recover from the losses recorded during the time. It was indeed a trying period for the digital market.
According to financial experts, they are of believing that the digital market will soon experience a global recession since most companies are slighting coping with an expectation of economic decline. Most smartphone companies will victims of this and to avoid being of them, Samsung company which is the largest smartphone brand worldwide is considering reducing its volume of smartphone products.
Conversely, this strategy would negatively affect the digital market as a whole since other companies purchasing Samsung phone parts in bulk and the end users will not be able to get some of the company’s products.
As said by the Samsung Company, there is no expectation of a major growth in the business of smartphone production and does not expect significant growth in its production margin throughout this year.
Reuters Company also attested to the new production sequence that Samsung is willing to follow, thereby stating that there has been low production of smartphones in its Thai Nguyen factory. Note that this factory produces more than 90 million smartphones in a year but, will not follow suit this year.
Information provided by the workers in some of Samsung’s factory also mentioned that some of its sectors do not work on production adequately but instead works on half of the regular factory working time. Others were of the view that Samsung is not currently cutting down its methods of production while others anticipated that the company may be moving its factory materials to India or South Korea.
As a matter of fact, there were numerous claims from Samsung’s staff that the company is not performing as it should at the moment. This got to the extent where another group of workers stated that Samsung had reached the peak of its production.
According to sources, Samsung has never experienced the low production of smartphones for a long time. Consequently, this would also affect the workers’ pay slips since there will be pay cuts soon. However, there is no official report about Samsung’s implementation of pay cuts for its factory workers yet.