Samsung is reportedly cutting fourth-quarter smartphone production by 20% to 30% as rising memory chip prices erase profits in its mobile division. [2, 3, 7]
Mobile DRAM prices have risen 175% year over year as chipmakers divert supply to meet booming demand from AI data centers. [2, 5, 8]
The pressure extends across the industry: Apple has also cut iPhone production, while Huawei and Xiaomi have raised prices. [1, 13]
Samsung's total smartphone shipments are projected to reach 270 million units in 2026. [3, 5] The production cut could bring shipments as low as 200 million units. [3, 5]
The cost surge creates an internal challenge for Samsung: its semiconductor division benefits from high chip prices, while those prices hurt its mobile unit. [9, 14]