Samsung Electronics' Mobile eXperience (MX) division has begun cutting production for the fourth quarter of 2026 by 20–30%, according to an exclusive report from Korean outlet MoneyToday published October 8. The reduction is driven by a sharp rise in memory prices that has reportedly left the division making "no profit at all" on Galaxy smartphones sold at current volumes and pricing.

What the reports say

MoneyToday, citing multiple IT industry sources, reports that Samsung's Mobile division recently requested partners to reduce product supply volumes by 20% to 30% for Q4 2026. Where original forecasts expected Samsung to produce around 270 million smartphones in 2026, the company may now barely surpass 200 million units.

9to5Google reported on the MoneyToday claim the same day, noting that Samsung's Q4 is typically a quieter period ahead of the following year's flagship launches.

Why memory prices are squeezing margins

According to semiconductor market research firm TrendForce, cited by MoneyToday, the price of low-power DRAM (LPDDR5X) for smartphones traded at $145–$146 per 12GB module in Q2 2026 — a 175% increase compared to one year ago. MoneyToday attributes the surge to booming AI-driven memory demand. MoneyToday reports that smartphone DRAM prices in Q3 2026 are expected to rise approximately 20% from the previous quarter, reaching up to $180 per 12GB module.

An industry source told MoneyToday: "Due to rising memory and semiconductor prices, Samsung Electronics smartphones currently yield no profit at all when sold," analyzing the production cut as a strategy to maintain the company's overall profit level by reducing smartphone volumes.

Financial impact

MoneyToday said Samsung was scheduled to release its preliminary third-quarter earnings on October 8. Financial information firm FnGuide's consensus estimate puts Samsung's overall Q3 operating profit at 106.64 trillion won. In contrast, MoneyToday reported that one securities firm estimated the MX division alone would post an operating loss of 19 trillion won for the quarter — approximately $14 billion USD at the conversion 9to5Google reported.

IDC data cited by MoneyToday shows Samsung smartphone shipments of 62.4 million units in Q1 2026 and 62.7 million in Q2, with forecasts of 59 million for Q3 and 52 million for Q4 — a roughly 12% quarter-over-quarter decline even before the additional supply-chain cuts.

What we don't know

  • Samsung's official comment. Neither MoneyToday nor 9to5Google quote a Samsung statement confirming the production cuts or the "no profit" claim.
  • Which models are affected. The reports do not specify whether cuts apply across the lineup (Galaxy S series, Z foldables, A series) or are concentrated on specific models.
  • Duration beyond Q4. It is unclear whether the 20–30% reduction extends into Q1 2027 or is limited to the current quarter.
  • Pricing response. Samsung recently raised U.S. prices on several Galaxy models by $100 (per 9to5Google). Whether further price increases or promotional changes follow is unknown.