Samsung plans to cut production of its mid-range Galaxy A series phones by as much as 20% in the fourth quarter of 2026, citing rising component costs. The company recently increased prices across its lineup — low-end, mid-range and high-end models — but that move has not been enough to offset higher manufacturing expenses.
Why Samsung is cutting Galaxy A production
A report from South Korea says the prices of memory chips, including RAM and storage, have multiplied over the past year, significantly raising total manufacturing costs. Even after the price hikes, Samsung is reportedly unable to sustain these elevated chip costs and has decided to reallocate memory chips away from the Galaxy A series to higher-end devices such as the Galaxy S and Galaxy Z series. Those flagship lines are expected to provide higher profit margins and a better chance of reducing losses.
The Galaxy A series historically accounts for the largest share of Samsung’s smartphone shipments, making up more than 70% of its total phone shipments. Cutting production of these mid-range models could lead to fewer overall sales than projected and, as a result, create an opening for Apple to overtake Samsung as the number-one shipper, the report suggests.
