Galaxy phones reportedly ‘yield no profit at all’ when sold as Samsung cuts production
AI-summarised brief · reviewed before publication
Samsung is slated to slash Galaxy smartphone production by up to 30% through the fourth quarter of 2026, according to Korean outlet MoneyToday. The cut would lower the projected output from roughly 270 million units to just over 200 million. Samsung cites a steep rise in memory component costs as the driver, noting a 175 % increase in 12 GB RAM prices since last year and an additional 20 % jump expected in Q3‑Q4 2026. The report claims Samsung earns “no profit at all” on its Galaxy lineup, despite premium models like the S26 Ultra and Z Fold 8 likely remaining marginally profitable. The mobile division is projected to record a 19 trillion‑won (≈$14 billion) loss in Q3 2026, prompting the production curtailment and recent price hikes.
💡 Why It Matters
- · Samsung’s profit‑free Galaxy sales force the company to tighten output and raise prices, reshaping the high‑end Android market’s supply dynamics.