What you need to know
- Samsung may cut Galaxy A production by 20% in the fourth quarter as component costs soar.
- Around 10 million fewer phones could be produced annually, with further cuts of over 10% reportedly planned for 2027.
- Samsung may prioritize Galaxy S and Z flagships over cheaper phones to protect profitability.
Samsung is reportedly planning to scale back on cheaper Galaxy phones as soaring component prices squeeze its mobile business.
South Korea’s ETNews says the company plans to cut production of its Galaxy A series by about 20% in the fourth quarter, potentially leaving it with millions fewer phones than expected and freeing up more resources for its pricier flagship devices.
Component orders have been lowered versus Samsung’s original 2026 production plan, the report said. That’s around 10 million fewer phones a year, with production cuts of over 10% reportedly planned in 2027.
Samsung has yet to confirm the reported changes. Android Central has reached out to the company for comment and will update this story when we receive a response.
That move makes financial sense, even if it puts pressure on Samsung’s cheapest phones. The Galaxy A series reportedly accounts for about 70% of the company’s smartphone shipments and is a major player in Samsung’s continuing tussle with Apple for the global sales crown.
The problem is that making cheaper phones is becoming more expensive. Memory prices have skyrocketed, with memory chips said to be accounting for more than half of the cost in producing some budget and mid-range devices. Other component suppliers, including printed circuit board and multilayer ceramic capacitor makers, are also feeling the squeeze as manufacturers focus on lucrative AI hardware.
Samsung is reportedly steering scarce components to its higher-margin Galaxy S and Galaxy Z devices in response. That is to say, it may be better to sell fewer affordable phones than to sell millions of phones that make little or no profit.
The latest report comes a few weeks after rumors began circulating that the company may reduce overall smartphone output by 20% to 30% in the fourth quarter as memory costs continue to climb. That would leave its 2026 production target well short of the roughly 270 million phones it had originally planned.
Consumers may unfortunately end up paying part of the bill. An industry source cited by ETNews cautioned that Samsung’s production cuts could translate into higher launch prices for future Galaxy A phones, possibly with reduced display or camera specs.
The bigger question is whether Samsung can defend its profit margins without ceding to Apple and Chinese smartphone brands in price-sensitive markets.
