Samsung Electronics' Mobile Experience division is planning to cut smartphone production, with the steepest reduction in the fourth quarter of 2026 reaching 30%. According to ChainCatcher, multiple IT industry sources said Samsung has notified several partners to reduce product supply by 20% to 30%.

The report said the 30% figure was not clearly defined as quarter-on-quarter, year-on-year, or versus earlier production expectations. Samsung had originally planned to produce as many as 270 million smartphones in 2026, supported by new devices including the Galaxy Z Fold8. After the fourth-quarter cut, full-year output is now expected to fall to just above 200 million units, a decline larger than the market had anticipated.

IDC data showed smartphone shipments in the first and second quarters of this year were 62.4 million and 62.7 million units, respectively. Earlier forecasts put third-quarter shipments at 59 million units and fourth-quarter shipments at 52 million units, implying a roughly 12% decline in the fourth quarter from the third.

Money Today said rising memory prices are the main driver behind the production cut. TrendForce data showed 12GB LPDDR5X smartphone DRAM was priced at $145 to $146 in the second quarter, up 175% from a year earlier. The report also said AI demand has pushed memory prices higher, with third-quarter smartphone DRAM prices expected to rise another 20% to as much as $180. Industry sources said Samsung's smartphone sales are currently unprofitable, and the cut is intended to protect overall profitability.