Samsung Cuts 10 Million Galaxy A Phones as Memory Costs Soar

Samsung Electronics is cutting fourth-quarter production of its Galaxy A smartphones by about 20% from plan, South Korea’s ETNews reported on 25 October, citing industry officials. One of them put the reduction at about 10 million units on an annual basis.

ETNews says the cut follows steep rises in memory chip prices, which have at times taken memory past half the cost of a mid- or low-priced phone, and shortages of circuit-board and capacitor materials that are going first to AI chips.

Business Pill · MARGIN SQUEEZE

A short explainer of a margin squeeze: when what you pay rises and what you can charge falls. It teaches the general idea only and says nothing about Samsung or the figures in this piece.

What ETNews Reported

Samsung has sent its supply chain a volume adjustment plan that reduces Galaxy A production, according to ETNews. “Component orders for the fourth quarter have fallen by about 20% compared with the production plan at the start of the year,” an industry official told the newspaper, in our translation. “On an annual basis, that is a reduction of about 10 million units.”

Another industry official told ETNews that Samsung’s mobile division is suffering a loss this year and that “the stance is to cut Galaxy A series production by more than 10% next year as well.”

Source: ETNews, 25 October 2026, in our translation from Korean.

Why Memory and AI Are in the Story

ETNews puts the cut down to “chipflation” and rising raw material prices. It says printed circuit board and multilayer ceramic capacitor materials are being put first into higher-value AI semiconductor demand, making them hard to secure for smartphones. Samsung is moving parts and materials towards its Galaxy S and foldable Galaxy Z flagships, which earn more, the newspaper reported.

The decision comes in a close race with Apple for first place by shipments: ETNews cites a Counterpoint Research forecast from August that Samsung would finish this year ahead by 0.1 percentage points. An industry official told the newspaper that smaller production runs could lead to higher release prices.

Connecting the Coverage

On 26 October we reported that Samsung capacitor waits hit 61 weeks as prices jump 23%, and that Korea nears $1 trillion of exports as AI chips lift GDP 1%.

The Structural Read

As we read it, the cut is a choice of margin over volume: ETNews says Samsung is moving parts and materials to its Galaxy S and Galaxy Z flagships, which earn more, while its mobile division is in loss this year, according to an industry official.

As we read it, the cost arithmetic is what changed: ETNews says memory has at times passed half the cost of a mid- or low-priced phone as memory chip prices rose steeply.

As we read it, the timing matters for share: ETNews cites a Counterpoint Research forecast that Samsung would finish this year ahead of Apple by only 0.1 percentage points.

Three Implications

FOR PHONE BUYERS An industry official told ETNews that smaller production runs could lead to higher release prices, or new phones with downgraded displays or cameras at higher prices.

FOR SAMSUNG’S MIX ETNews says Samsung is concentrating parts and materials on its Galaxy S and foldable Galaxy Z flagships.

FOR NEXT YEAR Another industry official told ETNews the stance is to cut Galaxy A production by more than 10% next year as well.

The Business Engineer Lens

This story maps onto the Business Engineer framework The AI Memory Chokepoint.

The framework opens: “The AI race has a new bottleneck, and it’s not what most observers expect.”

As we read it, a phone maker cutting a mass-market line because memory and component materials cost more, as ETNews reported, shows that constraint reaching consumer devices. The framework was published in December 2025 and does not discuss Samsung’s smartphones.

What Is Not Established

The report rests on unnamed industry officials. Neither ETNews nor 9to5Google, which followed it, carries a statement from Samsung, and Samsung has not announced any production change. The 10 million figure is an annual estimate from one official, and ETNews gives no split by model or region. The translations of the Korean quotations are ours.

The Bottom Line

Samsung is cutting fourth-quarter Galaxy A production by about 20% from plan, about 10 million units a year, ETNews reported, citing industry officials. The Galaxy A line makes up 70% of Samsung’s smartphone shipments, and the newspaper ties the cut to memory prices and to materials going first to AI chips.