Samsung, due to a sharp increase in the prices of memories used in smartphones, apparently plans to significantly reduce its Galaxy phone production program until the end of 2026. According to a report from the Korean outlet MoneyToday, the company may cut its smartphone production in the fourth quarter of this year by up to 30 percent.
According to ITPNA quoting 9to5google, initial forecasts indicated that Samsung would produce about 270 million smartphones in 2026; but new estimates show that this figure may drop to just over 200 million units. Rising component costs, especially RAM, are cited as one of the main factors behind this decision.
According to the report, the price of 12GB RAM has increased by about 175 percent compared to last year. It is also predicted that the price of this component will increase by about another 20 percent each quarter in Q3 and Q4 of 2026 compared to the previous quarter. This trend raises the production cost of phones; even if Samsung, as one of the main players in the memory market, is also active in manufacturing these components.
Samsung’s mobile division is apparently facing significant financial pressure. MoneyToday claims that the company effectively makes no profit when selling Galaxy phones. It is not clear whether this claim applies to all models or refers more to the overall profitability situation of the division. Premium phones such as the Galaxy S26 Ultra and the Galaxy Z Fold 8 may still have positive profit margins.
The report also mentions the possibility of a 19 trillion won loss for Samsung’s mobile division in Q3 2026; a figure reported to be equivalent to about $14 billion. Rising component costs could put additional pressure on final product prices and pave the way for another increase in Galaxy phone prices. However, these figures and claims are based on media reports, and official company information is needed to accurately assess Samsung’s financial situation.