Samsung may cut Galaxy A smartphone production by 20% amid rising memory costs and component shortages, potentially driving higher prices and fewer affordable choices for consumers worldwide.
Webdesk- Amina Houth
Samsung is reportedly planning to reduce production of its affordable Galaxy A smartphones as rising memory prices and component shortages increase manufacturing costs, potentially leading to higher prices and fewer choices for budget-conscious consumers worldwide.
According to South Korea’s Electronic Times, Samsung plans to cut Galaxy A production by approximately 20% in the fourth quarter of 2026 compared with its original targets. Component orders have reportedly declined by a similar percentage, potentially resulting in around 10 million fewer smartphones over the year. The company is also reportedly considering an additional production cut of more than 10% in 2027.
The reported reductions come amid a sharp increase in memory prices, which are putting pressure on smartphone manufacturers. Memory components can account for more than half of the total manufacturing cost of some budget and midrange smartphones, making it increasingly difficult for companies to maintain affordable prices.
Growing demand for artificial intelligence infrastructure has further intensified competition for components. Manufacturers are prioritising supplies for AI-related hardware, creating additional challenges for smartphone production.
Samsung is reportedly responding by directing more components towards its premium Galaxy S and Galaxy Z smartphones, which generally offer higher profit margins than its budget-friendly models.
The pressure is also affecting other smartphone brands. Nothing recently cancelled plans for its next CMF phone after determining that it could no longer deliver a meaningful upgrade at the expected price. The company said its existing CMF Phone 2 Pro, originally priced at $279, would cost between $320 and $370 if produced today with the same specifications.
Research firm Omdia has estimated that shipments of smartphones priced below $400 could decline by more than 22% in 2026 as rising memory costs squeeze manufacturers’ profit margins.
For consumers, the developments could mean higher prices, fewer affordable models or reduced specifications at existing price points. Some industry sources cited by Electronic Times have warned that future smartphones could become more expensive despite offering downgraded displays or cameras.
The outlook for buyers remains uncertain, as memory supply pressures could continue until 2028, according to statements from Samsung and Micron executives. Although manufacturers are investing in new production facilities, increasing supply will take time.
If the reported production cuts proceed, affordable Samsung smartphones could become harder to find at competitive prices. However, Samsung has not independently confirmed the reported cuts, and the final impact on retail prices remains uncertain.
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