Reports say Samsung phones will reduce production by up to 30% in the fourth quarter of 2026

IT Home cited a report from Money Today on October 8, stating that Samsung Electronics' Mobile Experience (MX) division plans to cut smartphone production, with a maximum reduction of 30% in the fourth quarter of 2026. Several IT industry insiders have indicated that Samsung's MX division has notified multiple partners to reduce product supply by 20% to 30%. IT Home noted that the original text did not specify whether this 30% is compared to the previous quarter, year-on-year, or against earlier expected production.

In terms of production, Samsung Electronics originally planned to rely on new products like the Galaxy Z Fold8 to produce up to 270 million smartphones for the year. After the significant reduction in the fourth quarter, the final annual production is expected to drop to just over 200 million units, exceeding market expectations. IDC data shows that smartphone shipments in the first and second quarters of this year were 62.4 million and 62.7 million units, respectively, with previous forecasts predicting shipments of 59 million and 52 million units for the third and fourth quarters, indicating a decline of about 12% in the fourth quarter compared to the third quarter.

Money Today reported that the rise in memory prices is the core driving factor behind the production cuts. TrendForce data shows that the price of 12GB low-power DRAM (LPDDR5X) for smartphones was $145 to $146 in the second quarter of this year, an increase of 175% compared to the same period last year. The report also stated that demand for artificial intelligence has driven up memory prices, with smartphone DRAM prices expected to rise by about 20% in the third quarter, reaching as high as $180. IT industry insiders stated that Samsung's current smartphone sales are no longer profitable, and the production cuts are a strategy to maintain overall profitability.