Samsung Reportedly to Cut Galaxy A Output by Up to 20% on Memory Costs

Samsung is reportedly preparing to scale back production of its mid-range phones significantly. According to a report out of South Korea, the company plans to cut Galaxy A series output by as much as 20% in the fourth quarter of 2026.

The main reason cited is rising component costs. Samsung is known to have recently raised prices across its entry-level, mid-range and flagship phones, but the report suggests those increases may not be enough to offset climbing manufacturing costs. In other words, the company appears to be struggling with cost pressure even after raising prices, and is reshaping its production plans accordingly.

Memory chip prices have soared

The report says prices for memory chips such as RAM and storage have multiplied over the past year. Because these chips make up a substantial share of a smartphone's production cost, the jump is pushing total costs up sharply. Samsung is said to be unable to absorb that burden even with its price hikes.

Against that backdrop, Samsung has reportedly decided to take memory chips away from the Galaxy A series and steer them toward higher-end families such as the Galaxy S and Galaxy Z. These devices are said to offer higher profit margins and a better chance of limiting losses. Put simply, Samsung is choosing to allocate its memory supply to the products that generate the most return.

The Galaxy A series is the backbone of sales

The Galaxy A series has traditionally accounted for the largest share of Samsung's smartphone sales. Made up mostly of affordable, mid-range devices, the lineup reportedly represents more than 70% of the company's total phone shipments. A production cut in this family could therefore lead to lower overall sales volumes.

In terms of shipment volume, Samsung's closest rival is Apple. If the production reduction causes total sales to fall, it could make it easier for the iPhone maker to take the top spot from Samsung.

What it means for prices and features

Analysts reportedly expect smartphone prices to rise further next year. If cost pressure persists, upcoming phones could also see some features scaled back; cheaper camera and display components are cited as possible examples.

For now, the information rests on the report alone, and Samsung has issued no statement confirming or denying the plan. The trajectory of memory chip prices and the company's pricing policy are likely to be the key factors shaping both the production volumes and the prices of mid-range phones in the months ahead.