Samsung is reportedly asking suppliers to reduce production volumes as rising memory chip costs put pressure on its smartphone business.
Samsung could significantly reduce its smartphone production during the fourth quarter of 2026 as the ongoing global memory chip shortage continues to push up component costs.
According to a report from Korea’s Money Today, Samsung’s Mobile Experience (MX) division has contacted suppliers and asked them to reduce production volumes by between 20% and 30%.
The reported cuts would apply specifically to the October-December period. If implemented, they could have a major impact on Samsung’s smartphone shipment expectations for the full year.
Samsung shipment estimate falls
The report suggests Samsung could finish 2026 with around 200 million smartphone shipments, significantly below its previous estimate of approximately 270 million units.
A sharp increase in memory prices is reportedly one of the key factors behind the decision. The report highlights a 175% increase in the price of 12GB LPDDR5X RAM, adding further pressure to smartphone manufacturing costs.
Memory components are an important part of modern smartphones, particularly as manufacturers increasingly equip devices with larger RAM capacities to support artificial intelligence features and demanding applications.
The reported production reduction could therefore reflect Samsung’s attempt to manage costs while navigating challenging conditions in the memory market.
Q4 production traditionally slows
Samsung’s smartphone production is traditionally lower during the fourth quarter compared with other periods of the year.
One reason is the company’s product cycle. Samsung typically introduces its next-generation Galaxy S-series flagship smartphones in January or February, meaning production plans for existing models are adjusted ahead of the new launches.
However, the reported 20%-30% supplier reduction would represent a substantial adjustment if confirmed.
Samsung has not been cited as officially confirming the reported production cuts, so the figures should be treated as estimates based on the Korean report.
The memory chip crisis has continued to affect technology companies, with higher component prices creating additional challenges for smartphone manufacturers. Samsung’s reported response highlights how rising memory costs could influence production and shipment plans heading into 2027.