Samsung is reportedly asking its suppliers to build far fewer phones in the last three months of the year, because memory chips have become so expensive that many Galaxy models earn little or no profit. The figures come from Korean business press and have not been confirmed by Samsung, so treat them as a credible signal, not a settled fact. The story matters beyond Samsung, because the same pressure is hitting every phone maker.
What the reports say
According to the Korean reports, Samsung’s Mobile Experience division has asked suppliers to cut shipments of components and assembled phones by 20% to 30% for the fourth quarter. Samsung had been expected to produce around 270 million phones in 2026, and the reports say the cuts could push the annual total into the low 200-million range. Industry estimates cited alongside the story had previously put production at 59 million units in the third quarter and 52 million in the fourth, a drop of about 12% that is partly seasonal, since buyers wait for the new Galaxy models that usually arrive around January or February.
A separate report gives different numbers: it says Samsung lowered its yearly shipment target from 240 million to the low 230 million range. The two sets of figures measure different things, production plans and shipment targets, so they do not necessarily contradict each other, but neither is official.
Why memory is the problem
Phone memory has become expensive because AI companies are buying huge volumes of chips for data centers, leaving less capacity for mobile devices. Research firm TrendForce data cited in the reports puts a 12 GB LPDDR5X chip, a common type in flagship phones, at $145 to $146 in the second quarter, nearly triple the price a year earlier, with a further increase of about 20% expected, to around $180. The reports say memory’s share of a phone’s total component cost has jumped from 10–15% to as much as 30–40%.
A phone maker cannot raise retail prices as fast as chip prices move, so margins shrink. In the reports’ reading, the cut is less about weak demand and more about protecting profit.
The odd part: Samsung wins on memory
Samsung is both one of the world’s biggest memory producers and one of its biggest phone makers, so the same AI boom helps one division and squeezes the other. The reports note that Samsung’s chip business is booming while its phone business is under strain. If the cut goes ahead, it could also help Apple overtake Samsung in global shipment volume for 2026, according to a report published this week.
What this means for you
If you plan to buy a Galaxy phone, expect fewer deep discounts and possibly higher prices on models with a lot of RAM, since those are the ones most exposed to memory costs. The effect is not limited to Samsung. Other manufacturers face the same chip prices, so waiting for a sale may not pay off the way it used to.
If you are shopping for a cheap phone, watch for configurations with less RAM or storage than last year’s equivalent. Compare the spec sheet, not just the price. And until Samsung comments officially, read every number in this story as a report, not a plan.
