Samsung may cut Galaxy phone production by up to 30%, MoneyToday reports
- Samsung is cutting Galaxy smartphone production plans through the end of 2026 by as much as 30 percent, according to a report from Korean media outlet MoneyToday cited...
- The primary driver behind the reduced output is the rapidly escalating price of memory components.
- Samsung typically experiences a quieter fourth quarter as the company prepares for upcoming flagship device rollouts and older launches age out of the market.
Samsung is cutting Galaxy smartphone production plans through the end of 2026 by as much as 30 percent, according to a report from Korean media outlet MoneyToday cited by 9to5Google. Initial forecasts expected the company to build approximately 270 million smartphones in 2026, but the manufacturer may now barely surpass 200 million units as component costs surge across the industry.
Memory Price Surges Drive Major Production Cuts
The primary driver behind the reduced output is the rapidly escalating price of memory components. While Samsung operates a major division within the global memory market, Samsung Mobile remains subject to the same supply chain pressures as rival manufacturers. MoneyToday reported that 12GB of RAM has jumped in price by 175 percent since last year, with an additional 20 percent increase expected in the third and fourth quarters alone compared to the previous quarter.
Samsung typically experiences a quieter fourth quarter as the company prepares for upcoming flagship device rollouts and older launches age out of the market. However, the current financial strain extends far beyond normal seasonal slowdowns. MoneyToday reported that Samsung is making no profit at all when it sells a Galaxy smartphone. While higher-end devices like the Galaxy S26 Ultra and Galaxy Z Fold 8 likely maintain some level of profitability, the broader lineup struggles under cost pressures that help explain recent retail price hikes.
Mobile Division Faces Projected Multi-Billion-Dollar Losses
The manufacturing cutbacks align with severe projected financial deficits for Samsung’s mobile business. MoneyToday reported that Samsung’s mobile division is expected to post a 19 trillion won loss in the third quarter of 2026, translating to roughly $14 billion USD. These figures show the acute financial toll that rising semiconductor and RAM costs are inflicting on major consumer hardware producers.
In contrast to new hardware production, Samsung continues to maintain secondary sales channels for existing devices. Samsung offers certified refurbished options in the United States through programs such as the Samsung Certified Re-Newed store, providing trade-in credits and factory-refurbished models under specific eligibility guidelines.
Production Adjustments Shape Industry Outlook
The sharp reduction in Galaxy production targets through December 2026 shows that one of the world's largest phone makers is changing its manufacturing strategy. As component suppliers maintain high pricing for RAM and other critical hardware elements, Samsung faces ongoing challenges in balancing shipment volumes with operational profitability.