A new report alleges that Samsung is cutting way back on Galaxy smartphone production plans through the end of 2026, by as much as 30%.
Korean media, MoneyToday, reports that Samsung is cutting Galaxy smartphone production by up to 30% through Q4 2026. Where original forecasts expected Samsung to produce around 270 million smartphones in 2026, the company may just barely surpass 200 million at this point.
The reason for the reduction is, of course, the surging price of memory.
Despite Samsung’s major role within the memory market, Samsung Mobile still has to deal with the same downsides as other manufacturers. The report points out that 12GB of RAM has jumped in price by 175% since last year and, in Q3 and Q4, it’s expected to rise by around 20% compared to the previous quarter alone. Samsung’s Q4 is generally a bit quiet as the lead-up to 2027 flagships looms and as other launches start to age out.
The big kicker here is that Samsung is apparently making “no profit at all” when it sells a Galaxy smartphone. This is presumably a layered statement, as one would imagine that more expensive devices like the Galaxy S26 Ultra and Galaxy Z Fold 8 still manage some level of profit, but even if it’s just a general statement about the whole lineup, it certainly explains Samsung’s recent price hikes. Samsung’s mobile division is expected to mount a 19 trillion won loss in Q3 2026, the report brings out, which is around $14 billion USD.
Follow Ben: Twitter/X, Threads, Bluesky, and Instagram
FTC: We use income earning auto affiliate links. More.
Check out 9to5Google on YouTube for more news:
Samsung is a technology conglomerate based out o…
Find him on Twitter @NexusBen. Send tips to schoon@9to5g.com or encrypted to benschoon@protonmail.com.
