Galaxy phones reportedly ‘yield no profit at all’ when sold as Samsung cuts production
9to5google.com Oct 9, 2026

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.