Samsung resumes production capacity variable in May: cut smartphone production by half in April

According to Korean media reports, Samsung Electronics supplier data released on April 13 shows that in April this year, Samsung Electronics ’smartphone production will be slightly higher than 10 million units, about half of the average output of 25 million units in the previous month. A source explained that Samsung Electronics produces up to 300 million mobile phones each year. However, due to the impact of the new coronavirus, the company's inventory in March still has a considerable amount of surplus. Moreover, Samsung's factories in India and Brazil have been closed, so it makes no sense to produce products that exceed market demand. The It is understood that Samsung usually produced high-volume mobile phones in the first quarter in previous years to ensure sufficient inventory. After April, the company will further develop production plans based on demand. Therefore, Samsung's mobile phone production in April will generally be lower than the monthly average in the first quarter. A However, in April this year, due to the global economic downturn due to the outbreak of the new crown epidemic, Samsung mobile phone output may be lower than ever. However, another source pointed out that Samsung Electronics plans to return production to normal levels in May after resuming operations in its factories in India and Brazil. But in fact, it may take longer than expected for production to get back on track. Recently, the Indian government announced that the national blockade will be extended to May 3, and the number of confirmed cases of new coronary pneumonia in Brazil has also approached 30,000. However, South Korean smartphone suppliers believe that mobile phone sales will bottom out in the second quarter of this year, and orders in the third quarter will show an increase. If so, Samsung may miss the market opportunity.