The supply contraction has raised questions about whether the production cut will prove bullish or bearish for competitors like Apple in the coming year. This shift follows reports that Samsung's current smartphone lineup has reached a point of zero profit margin due to the increase in hardware expenses.
Tuesday, October 20, 2026
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Samsung Cuts Q4 Phone Production 30% After Memory Costs Erase Profit
Tech13 days ago
The Seoul-based tech company is scaling back its orders for mobile components to counteract a spike in the cost of LPDDR5X RAM. Samsung is reducing its fourth-quarter smartphone production by up to 30% because costs for that specific memory rose 175% in one year, which reportedly left the electronics giant with no profit on its current handset sales. The company has asked its suppliers for 20% to 30% fewer parts to accommodate the reduction in output.
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