Samsung is reportedly cutting Galaxy A production in the fourth quarter by about 20% compared to original plans, according to a new report from Korea. The move comes as memory prices continue to rise, squeezing smartphone makers' margins and reportedly pushing Samsung's mobile division toward its first-ever annual loss.
Component orders for Q4 are said to be down roughly 20% from Samsung's early-year production plan, translating to around 10 million fewer units for the full year. One industry source claims the cuts may extend into next year, with Samsung aiming to make at least 10% fewer Galaxy A devices.
The Galaxy A series accounts for 70% of Samsung's smartphone shipments, including models like the Galaxy A57, Galaxy A37, and Galaxy A17 5G. With Samsung shipping 230-240 million phones annually and competing closely with Apple for the top spot, reduced production of its volume sellers could cost it the lead.
Memory now makes up over half the cost of some budget phones, while key components like PCBs and MLCCs are being prioritized for AI chips. Samsung is shifting materials toward more profitable Galaxy S and Galaxy Z flagships.
An industry insider warns lower production may lead to higher prices and downgraded features, echoing Counterpoint's March warning.
Source: GSMArena · Summarized by HeadlinesBriefing