Samsung is reportedly preparing to reduce Galaxy A phone production by 20% in the fourth quarter of 2026, according to supply-chain sources cited by ETNews. The lower component orders would amount to about 10 million fewer handsets on an annualized basis, affecting the company’s highest-volume smartphone line.
The report says Samsung is also considering an additional production reduction of more than 10% for 2027. Neither plan has been confirmed publicly by Samsung, and the report does not specify which Galaxy A models or regions would be most affected.
Galaxy A devices account for roughly 70% of Samsung’s smartphone shipments, making the reported cut significant for the company’s unit volumes. Samsung ships around 230 million to 240 million phones annually, while its premium Galaxy S and Galaxy Z lines generate higher margins than its budget and midrange models.
The reported decision is tied to rising prices for memory and other electronics components, a trend sometimes described as “chipflation.” Demand tied to AI infrastructure is said to be tightening supplies of memory as well as materials used in circuit boards and capacitors. For some entry-level and midrange phones, memory can account for more than half of manufacturing costs.
Samsung may therefore prioritize available components for its higher-margin flagships and foldables. One source cited in the report said Samsung’s Mobile eXperience division had moved into a loss this year, although that claim has not been independently confirmed. The situation is notable because Samsung is itself a major memory supplier, yet higher memory prices can still increase the cost pressure on its own mobile products.
A sustained reduction in Galaxy A output could create additional room in the affordable and midrange segments for Chinese smartphone vendors, including Xiaomi and OPPO. It could also raise the prospect of future Galaxy A models carrying higher prices or making hardware compromises, though neither outcome has been announced by Samsung. The extent of any 2027 reduction remains the key unresolved detail.
