Samsung is reportedly cutting smartphone production as memory costs soar
androidcentral.com Oct 8, 2026

Samsung is reportedly cutting smartphone production as memory costs soar

AI-summarised brief · reviewed before publication

Samsung is reportedly asking its component suppliers to reduce smartphone output by 20‑30% in the fourth quarter, according to Korean outlet Money Today. The cut responds to soaring DRAM prices that are squeezing margins on many models, forcing the company to choose between higher retail prices and lower profitability. Analysts had projected Samsung to ship about 270 million phones in 2026, but the reduction could bring total volume into the low‑200 million range. TrendForce data shows Samsung produced roughly 240 million units in 2025, tying Apple for global volume leadership. The move may shift focus toward higher‑margin premium Galaxy devices and limit availability of low‑priced models, though Samsung has not confirmed the plan. Investors will gauge whether this is a temporary fix overall.

💡 Why It Matters

  • · Rising DRAM prices are forcing Samsung to abandon volume‑driven growth, accelerating its shift toward higher‑margin flagship phones.