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first_img Samsung Electronics lowers the production of mid-range and low-end smartphones in the fourth quarter, as the supply of PCB raw materials is hindered

According to a report by ZDNet Korea on October 15, Samsung Electronics has lowered its production plan for mid-range and low-end smartphones in the fourth quarter. The reasons include rising prices of memory chips and disruptions in the supply of glass fiber used in PCB raw materials CCL. Japan's Nitto Denko is shifting more production capacity towards T-glass for AI semiconductors, reducing the output of E-glass for smartphone PCBs, leading to supply shortages and price increases. E-glass is used in semi-cured sheets for smartphone motherboards HDI and RFPCB.The report states that after the rise in storage prices increased manufacturing costs, Samsung reduced orders for related components. Models like the Galaxy A have lower profitability, making it difficult to significantly increase production. This year, the prices of basic mid-range models have risen by more than 100,000 Korean Won compared to the previous generation. The outlook for component orders communicated to partners for the fourth quarter corresponds to an annual smartphone shipment volume of just over 230 million units, which is below the component industry's expectation of 240 million units and represents a decrease of 20% to 30% compared to before the Mid-Autumn Festival holiday. Plans for the mobile business next year have not been shared with partners as in previous years.The monthly production outlook for the fourth quarter in mid-September was 14.3 million units in October, 9.5 million units in November, and 7.6 million units in December, totaling 31.4 million units. This was adjusted at the beginning of this month to 9.9 million units in October, 7.6 million units in November, and 6.7 million units in December, totaling 24.2 million units, a reduction of 23%. While the production of mid-range and low-end models has been lowered, the shipment plans for flagship models like the Galaxy S27 at the beginning of next year remain at a high level, and the shipment volume for foldable phones is also planned to increase. The MX and Network divisions reported a loss of 735 billion Korean Won in the second quarter, with the securities industry projecting an annual loss of 400 billion Korean Won.

first_img Tempo has launched the Zones privacy system into production, with Deel as the first customer

On October 14, the stablecoin payment blockchain Tempo announced that the payroll payment platform Deel has become the first customer to use its Zones privacy system in a production environment, with contractor balances and payment histories no longer publicly accessible. According to the case study released by Tempo, the funds deposited by Deel's treasury department into its Zone remain visible on the public network, but which contractors received payments, how much each received, and what assets they hold are private; contractors can view their own balances, while Deel retains access for reconciliation and auditing.Each Zone maintains a private ledger connected to the Tempo public network through a portal that holds endorsed assets. According to Tempo's privacy documentation, operators can read the ledger, while deposits and withdrawals will leave records on the public network, including the amount of tokens and public network addresses. Operators can also restrict the participants and assets supported by the Zone and apply the transfer policies of the token issuers. Tempo demonstrated an example of private accounts using public financial products: after depositing into the Zone, accessing public Earn products, and then bringing the positions back to the Zone, their balances and holdings remain private.This launch adds privacy features to Deel's existing wallet, which was opened to qualified contractors in over 80 countries in August. Tempo stated that this integration does not change Deel's existing customer wallet and treasury infrastructure, with embedded wallet service provider Privy supporting Zones through its API.

first_img 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.
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