Samsung reportedly to cut fourth-quarter smartphone output by up to 30%

Samsung Electronics' Mobile Experience (MX) division plans to cut its fourth-quarter 2026 smartphone production by as much as 30%, Korean media reported on October 8, according to Chinese outlets. IT Home attributed the report to Money Today, whose headline said Samsung phones "do not make money even when sold." Several industry sources said on October 7 that the division had recently asked partners to reduce product supply by 20% to 30%. IT Home noted that the original report did not say what the 30% figure was measured against. [ 1 , 2 , 3 , 4 , 5 ]

According to IT Home and Jiemian, Samsung had expected to produce up to 270 million smartphones this year, helped by new products such as the Galaxy Z Fold8, but final output is now expected to be just over 200 million, a larger reduction than the market expected. On October 9, IT Home cited ZDNET Korea as reporting that the MX business updated its fourth-quarter forecast to suppliers early this month: 9.9 million units in October, 7.6 million in November and 6.7 million in December, a total of 24.2 million. That is 23% below the forecast of 31.4 million two weeks earlier, and full-year output would fall from 240 million to just over 230 million, the report said. [ 1 , 2 , 6 ]

The reports linked the cut to memory prices. TrendForce data show 12GB LPDDR5X mobile DRAM at 145 to 146 US dollars in the second quarter, up 175% year on year, driven by demand from the artificial intelligence industry, with third-quarter prices expected to rise about 20% more to as much as 180 dollars. Jiemian cited TrendForce as saying memory makers are shifting capacity toward servers, but that fourth-quarter price increases are expected to moderate. An industry source said Samsung currently makes no profit on each smartphone sold and that cutting output is a strategy to maintain group profit. IT Home's later report said Samsung recently raised prices of its Galaxy S26 series and plans cost savings such as downgraded display panels in the next generation. [ 1 , 2 , 6 ]

cnBeta gave a different emphasis, saying the cut spans several product categories and aims to avoid inventory buildup amid slowing demand in major markets. It said Samsung had not issued a formal statement and that the scale and models involved remained to be confirmed. [ 5 ]

Fourth-quarter output usually declines seasonally because Samsung launches new models in January and February. IDC put Samsung's shipments at 62.4 million in the first quarter and 62.7 million in the second, and forecast 59 million and 52 million for the third and fourth quarters. Separately, Jiemian reported that Samsung expects July-September operating profit of 107.4 trillion won, up 782.5%, on revenue of 195 trillion won, with detailed results due on October 29. [ 1 , 2 ]