Samsung’s Mobile Experience division has reportedly asked supply partners to cut volumes by 20% to 30% in the fourth quarter of 2026, according to South Korean outlet Money Today. The reported move would go beyond the usual year-end production slowdown ahead of Samsung’s next Galaxy S launch cycle.
The pressure is said to be coming largely from rising RAM costs, as demand from the AI industry drives up memory prices. TrendForce figures cited in the report put the price of 12GB LPDDR5X memory at about $145 to $146 in the second quarter, up 175% year over year. The estimate for the third quarter was for a further increase of roughly 20%, approaching $180.
LPDDR5X is the RAM used to run apps and system tasks on a phone, rather than its built-in storage. Higher component costs leave Samsung with a difficult choice: pass them on through higher handset prices and risk weaker demand, or absorb them and accept lower margins. Reports have indicated that Samsung has already raised prices in several markets.
Industry sources cited in the report suggest premium-phone sales have not been enough to offset the higher manufacturing bill. However, Samsung has not officially confirmed the scale of any production reduction, and claims that phones are no longer profitable should be treated as industry assessments rather than a confirmed financial result for the Galaxy lineup.
An initial estimate placed Samsung’s 2026 smartphone output at up to 270 million units, but that outlook has reportedly been revised toward the lower end of a 200 million to 299 million-unit range. The remaining question is whether the reported fourth-quarter adjustment remains a short-term response to memory costs or signals a broader reset in Samsung’s 2026 production plan.
