Samsung, the world's leading smartphone manufacturer for years, could not meet its latest sales targets. Supply chain problems caused by Covid-19 and the bad economic situation in some countries upset the plans of the South Korean company. According to the news served by the Taiwan Economic Daily, Samsung plans to reduce its smartphone shipments by 13% next year. The company will cut smartphone production by around 30 million units, as it believes demand will continue to decline.

MediaTek will take the heaviest blow

Samsung's production cut this time will cover mid- and low-end A and M-series models, which were initially seen as the main sales force for the company. Therefore, MediaTek, Largan and other companies in the supply chain will be affected by this decision. MediaTek mainly supplies chipset, Largan lens modules and Shuanghong cooling modules. According to experts, MediaTek, which has the closest relationship with Samsung and supplies the most components, will receive the heaviest blow. According to the latest data from research organization Canalys, Samsung is currently the leader in the smartphone market with a share of approximately 22%. The company managed to increase its market share in the third quarter compared to the previous quarter. However, there is an 8% decrease on an annual basis.