According to a report by *Money Today*, Samsung has informed its supply chain that smartphone production will be reduced by up to 30% in the fourth quarter of 2026 due to the impact of the RAM crisis. Sources indicate that this 30% cut is significantly higher than the usual 12% reduction seen when the company is not launching new models.
The report notes that the sharp production cut is driven by a lack of profitability, with memory prices cited as the primary factor. Compared to the previous year, the price of 12GB RAM has surged by 175%, squeezing profit margins. Samsung had previously projected a production volume of 270 million smartphones for 2026, but this figure may now be scaled back to around 200 million units.
Despite the pressure from soaring component costs, Samsung and Apple continue to dominate the top two spots in smartphone sales for 2026. Samsung retains the advantage of sourcing memory from its own in-house production.
The outlook for Samsung's smartphone business stands in contrast to its semiconductor division, which has recorded a profit increase of over 700%, driven by RAM demand that shows no signs of abating in the near future.
Other Android competitors are also cutting device production this year due to supply shortages. To date, ASUS and CMF are among the companies that have refrained from launching new models as a result of these constraints.
