Samsung is reportedly planning to reduce Galaxy A series production by about 20% in the fourth quarter as soaring component costs squeeze its mobile business. The move, reported by South Korea's ET News, could result in around 10 million fewer phones annually, with additional cuts of over 10% reportedly planned for 2027.
The company appears to be prioritizing its higher-margin Galaxy S and Galaxy Z flagship devices to protect profitability. The Galaxy A series accounts for roughly 70% of Samsung's smartphone shipments, making it a key player in the ongoing competition with Apple for global sales leadership. However, memory prices have skyrocketed, with memory chips now comprising more than half the cost of producing some budget and mid-range devices.
Component orders have been lowered versus Samsung's original 2026 production plan. An industry source cautioned that these production cuts could translate into higher launch prices for future Galaxy A phones, possibly with reduced display or camera specifications. Samsung has yet to confirm the reported changes.
Source: Android Central · Summarized by HeadlinesBriefing