Samsung reportedly can’t make a profit on its phones, so it’s cutting production by millions
- Korean publication Money Today reports that Samsung Mobile Experience has requested suppliers to cut smartphone production volumes by 20-30% in the fourth quarter.
- Rising costs for LPDDR5X memory are forcing Samsung to adjust production, following a 175% year-over-year price increase that reached around $145 for 12GB in the second quarter.
- Memory prices are expected to rise another 20% in the third quarter, potentially reaching $180 for 12GB, while Samsung's current devices generate little to no profit after accounting for rising component costs.
- Annual production estimates have dropped sharply, with Samsung now expected to end the year with around 200 million smartphone shipments instead of the previously estimated 270 million figure.
- While production typically declines in October-December ahead of January Galaxy S-series launches, Money Today reports this reduction significantly exceeds market expectations; Samsung has not officially confirmed the cuts.
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Samsung is reportedly planning to cut its mobile phone production by up to 30 percent due to soaring memory prices due to the use of AI technology, which requires large amounts of memory.
Samsung Slashes Smartphone Production As Mobile Losses Mount, While Memory Chip Profits Soar – channelnews
Samsung Electronics is slashing smartphone production as surging memory and semiconductor costs hammer profitability, leaving its once lucrative mobile division facing mounting losses despite strong demand for its latest Galaxy Z Fold 8 smartphones. The South Korean technology giant, which is benefiting enormously from the global artificial intelligence boom through its semiconductor business, is now confronting a very different financial realit…
Report: Samsung is cutting up to 30% of its smartphone production in Q4
The ongoing memory chip crisis has been plaguing tech companies for months and a new report from Korea’s Money Today suggests that Samsung is ready to significantly cut its smartphone production. According to the report, Samsung Mobile Experience (MX) has already reached out to suppliers to reduce their production volumes by 20-30%. This is specifically for the Q4 months (i.e October-December) and according to estimates, Samsung is now expected …
Memory Boom Squeezes Samsung Galaxy Profits as Component Costs Surge
Get latest articles and stories on Business at LatestLY. Samsung Electronics faces an unusual operational paradox where its record-breaking memory chip sales are directly squeezing profits at its flagship Galaxy smartphone division, according to a news report by The Korea Herald. Business News | Memory Boom Squeezes Samsung Galaxy Profits as Component Costs Surge.
Memory boom squeezes Samsung Galaxy profits as component costs surge - The Tribune
Samsung Electronics faces an unusual operational paradox where its record-breaking memory chip sales are directly squeezing profits at its flagship Galaxy smartphone division, according to a news report by The Korea Herald.
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