● Covered by 1 source · 1 reportMedium impact1 neutral
Samsung reportedly cuts production of Galaxy A phones by 20% due to rising costs
Key points
- Samsung cuts Galaxy A phone production by 20%.
- Approximately 10 million units affected by the reduction.
- Resource reallocation to flagship products for profitability.
- Rising memory and chipset costs impact mid-range device margins.
Production Cuts for Galaxy A Series
Samsung is reportedly reducing its production plans for entry-level and mid-range Galaxy A smartphones. According to ETNews, the company will cut production by approximately 20% for these devices.
This reduction translates to about 10 million units annually, with further cuts anticipated for 2027. The Mobile Communications (MX) division is experiencing losses, prompting these strategic adjustments.
Strategic Shift to Flagship Devices
The primary reason for these production cuts is to reallocate resources towards Samsung's flagship products. These higher-priced devices offer better profit margins under current market conditions.
The cost of memory and chipsets for mid-range devices now accounts for roughly half of their total production cost, making them less profitable.
Impact on Samsung's Market Share
While the Galaxy A series typically represents a significant portion of Samsung's overall sales, these cuts indicate a strategic pivot. Entry-level and mid-range Galaxy A devices have historically been Samsung's best-selling phones, though the Galaxy S26 series recently surpassed this trend.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Samsung plans to reduce production of its entry-level and mid-range Galaxy A smartphones by approximately 20%, totaling around 10 million units. This decision aims to reallocate resources towards more profitable flagship devices, as increased costs for memory and chipsets have made mid-range production less viable.