December 2, 2016
South Korea-based handset makers LG Electronics and Samsung Electronics have slashed their 2017 shipment targets, in expectation that the global recession will cause a downturn in sales.
Samsung, the second biggest mobile phone maker in the world, cut its sales target 8% to 222.8 million units, down from 242 million.
Sales for the company in 2016 are expected to hit just over 200 million units.
LG has set its 2017 target at 105.6 million units, down 12% on the previous projection of 119 million. LG’s sales this year will be in the region of 100 million units.
Global demand for consumer electronics has seen a heavy decline in recent months, with handset and telecoms equipment makers issuing profit warnings.
Last week, shares in Japanese electronics maker Panasonic dropped 11% after it reduced its profit forecast by 90%.
Meanwhile, market analysts Gartner have predicted that global handset sales will fall by up to 4% in 2017.