Introduction: Samsung is reportedly preparing a major reduction in Galaxy A smartphone production as rising memory costs and tighter component supplies continue to pressure its mobile business.
According to a report from South Korea, Samsung may reduce Galaxy A production by around 20% during the fourth quarter, covering October through December. The cut is said to be significantly deeper than the company’s earlier production plan for the period.
The report claims Samsung has already informed its supply chain partners about the lowered volumes. One source says component orders for the quarter have dropped by roughly 20%, which could translate into about 10 million fewer Galaxy A units for the year. Another source suggests the slowdown may continue into next year, with Samsung potentially aiming for at least a 10% reduction in Galaxy A output.
Samsung Galaxy A57
The Galaxy A series is extremely important to Samsung’s overall smartphone business, accounting for about 70% of the company’s shipments. The lineup includes popular models such as the Galaxy A57, Galaxy A37, and Galaxy A17 5G. Samsung typically ships between 230 million and 240 million smartphones annually, and even a modest reduction in its best-selling series could affect its position in the global market race against Apple.
The main reason behind the reported cuts appears to be surging memory prices. Memory components now reportedly make up more than half of the total hardware cost in some budget smartphones. In addition, key materials used in components such as PCBs and MLCCs are increasingly being directed toward more profitable AI-related chips.
Samsung was previously able to maintain steady Galaxy A production because it had better access to raw materials than many Chinese competitors. However, with shortages continuing, the company is now said to be reallocating parts and resources toward its higher-margin Galaxy S and Galaxy Z flagship devices.
The impact may eventually reach consumers. Industry insiders warn that lower production volumes could lead to higher prices, while future Galaxy A models may arrive with downgraded displays or cameras despite costing more than previous versions. This aligns with earlier warnings from Counterpoint about rising costs affecting budget smartphones.
