Business · Companies · 1 hr ago

Samsung reportedly plans a 20% cut to Galaxy A phone production

Samsung reportedly plans a 20% cut to Galaxy A phone production

Samsung is reportedly cutting Galaxy A production by about 20% in the fourth quarter compared with its original plans.

The Galaxy A range is Samsung’s lower-priced line and a major driver of its phone sales, including purchases by businesses.

Rising memory and other component costs are making budget and midrange phones more expensive to build.

Samsung is reportedly directing more components to its higher-priced Galaxy S and Z phones, which can better absorb those costs.

The cut could mean fewer Galaxy A phones are available, with buyers facing higher prices or fewer choices.

Samsung is also said to be considering another production cut of more than 10% next year.

Relief from rising memory costs may not come until 2028, as new manufacturing capacity will take time to build.

3 sources

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