【#Tech24H】On October 9, 9to5Google cited Korean media reports saying that, affected by a sharp rise in memory chip prices, Samsung plans to cut Galaxy smartphone production by up to 30% in the fourth quarter of 2026, with the overall profitability of its phone business facing severe challenges. Data shows that the price of 12GB phone memory has surged 175% year-on-year and is initially forecast to rise another 20% quarter-on-quarter in the third and fourth quarters. The AI industry’s rush to buy memory chips is the core reason driving up procurement costs for phone memory. Samsung originally expected total smartphone production in 2026 to be about 270 million units, but after this round of cuts, full-year output may be only slightly above 200 million units. Faced with soaring costs, Samsung may be unable to pass all the added costs on to end consumers, leaving it with no choice but to shrink capacity and reduce production of low-margin models to control the scale of business losses.[ By Zhang Liyan | Tang Ruohan ]

