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South Korean phone manufacturer, Samsung, has announced it will slash the number of phones it had planned to produce this year, thanks to the biting Covid-19  aftershocks and ailing world economy.

As a result of the harsh economic effects by the coronavirus pandemic,  people all over the world have been forced to be more cautious with their money, and watch their spending habits more keenly. The war  between Russia and Ukraine has exacerbated things

Like all other corporations and businesses, Samsung has had to react so as to remain afloat. The company is having to adapt to these challenges as it seeks growth in the smartphone market. A new report out of South Korea suggests that Samsung has decided to cut its phone production by 30 million units this year.

Other firms have reportedly taken similar steps in the face of this demanding economic environment. Apple is believed to have cut its smartphone production for 2022 as well. The company is reportedly cutting production of the iPhone SE by 20%.

The report mentions that Samsung is cutting production targets across its low to mid-end and flagship models. Samsung was reportedly going to produce 310 million units of smartphones in 2022 but it has now decided to cut that back to 280 million units.

The company had initially aimed to produce 300 million units in 2022 as it has yet to hit this figure after 2017. However, the global economic situation has dented demand and the company has to react.

Inflation is at its highest in key markets across the globe. This causes people to limit expenditures on items they don’t immediately need. Market analysts expect this to be a major reason why sales of affordable devices may also decline this year.