Samsung smartphones aren’t turning a profit as memory prices rise — production will be cut by 30%

Samsung’s Mobile eXperience division is already cutting smartphone production in the fourth quarter of 2026: the cut could reach 30%. Amid rising memory prices, the company has also asked suppliers to cut smartphone production by 20–30%, and the report also says Samsung smartphone sales are currently not profitable.

According to TrendForce, in the second quarter, 12GB of LPDDR5X memory for smartphones cost $145–$146 (about 12,500 rubles). That’s 175% more than a year earlier. In the third quarter, the price is expected to rise by about 20% from the previous quarter and reach $180 (about 15,400 rubles).

IDC predicted that in the fourth quarter Samsung would produce 52 million smartphones — roughly 12% less than in the third. Before revising its plans, Samsung expected to produce up to 270 million smartphones in 2026. Now annual production could be around 200 million. Earlier, such expectations were tied to the success of new devices, including the Galaxy Z Fold8.

In one forecast, the Mobile eXperience division’s operating loss in the third quarter was estimated at 19 trillion won.

What do you think — can Samsung make its smartphone business profitable again if memory prices continue to rise?