Samsung is reportedly cutting Galaxy A production as surging memory prices squeeze smartphone margins, with component shortages and higher costs threatening to push prices up for consumers.

According to South Korean industry reports, Samsung has reduced its fourth-quarter Galaxy A production plans by around 20%, equivalent to approximately 10 million fewer handsets on an annual basis.

There are also reports that the company is considering cutting Galaxy A production by at least 10% in 2027.

The Galaxy A family includes models such as the A57, A37 and A17 5G. It accounts for an estimated 70% of Samsung’s smartphone shipments. A reduction could therefore affect its ability to compete with Apple for global smartphone shipment leadership.

The reported production cuts come as manufacturers face rising memory prices. Printed circuit boards and multilayer ceramic capacitors are also facing supply pressures as manufacturers direct resources towards higher-value AI hardware.

The pressure is extending beyond handset manufacturing.

Samsung Electronics has reportedly asked suppliers to reduce fourth-quarter component deliveries by 20 to 30% against earlier plans.

Apple has reportedly cut October orders for certain iPhone 18 Pro and Pro Max components by 15 to 20%.

The reductions threaten Samsung Display, which supplies to Apple and Samsung Electronics.

Lower orders for premium OLED panels could weigh disproportionately on profitability.

The underlying problem is the rising cost of smartphone memory. TrendForce estimated that prices for LPDDR5X mobile memory increased by 78 to 83% in the second quarter compared with the previous three months, intensifying pressure on device makers.

For consumers, less production may mean shortages but also higher prices, and perhaps changes in product specifications if the component costs remain high.

Industry sources are reported as warning that future Galaxy A models could become more expensive, despite receiving downgraded displays or cameras.

All this puts pressure on the affordable smartphone segment, where buyers are particularly sensitive to price increases and where Samsung competes with Chinese manufacturers.

Samsung’s reported response is to prioritise more profitable flagship products, including its Galaxy S and Galaxy Z foldable ranges.