Samsung is expected to decrease the manufacturing of its Galaxy A line phones by approximately 20% during the fourth quarter of 2026, compared to the initially planned volume. This decision is motivated by the sharp increase in memory chip values, which has raised production costs for both entry-level and mid-range smartphones.
According to reports from the South Korean press, Samsung's suppliers have already been notified about this reduction in component orders. It is estimated that this cut could result in about ten million fewer devices being produced throughout 2026. Furthermore, industry sources indicate that production of the same line in 2027 is also expected to fall by about 10%.
Annually, the company distributes between 230 and 240 million cell phones, according to GSMArena data, with approximately 70% of this total belonging to the A line, which includes models such as Galaxy A17, A37, and A57. The primary cause for this production adjustment remains the increasing cost of components, particularly RAM and storage chips.
Industry information reveals that memory modules can now account for more than half of the manufacturing cost of certain basic phones, which reduces the profit margin obtained from more affordable devices. Other elements, such as PCBs and MLCCs, are also under greater demand pressure due to the expansion of infrastructure focused on Artificial Intelligence. Industry sources also suggest that future cheaper versions may have adjustments to screens and cameras to absorb rising costs, in addition to being launched at higher prices.
Although Samsung manufactures its own memory, the company is reportedly prioritizing components and production capacity allocated to higher-value devices, such as the Galaxy S and Galaxy Z series models, which provide superior profit margins.
The impact of rising costs is already visible in the prices charged by Samsung in Brazil. Models from the Galaxy A line have seen price adjustments in recent months, reaching double their initial price. One example is the Galaxy A07 4G 256, whose value rose from R$ 1,099 in September 2025 to R$ 2,299 at the official Samsung store. Other models, including versions of the Galaxy A07, A17, A27, A37, and A57, have also experienced increases reaching 50% of the original price. Even the premium series has been affected, with the Galaxy S26 family showing increases of up to R$ 1,300.
Despite the adjustments, the mid-range category maintains its position as the brand's sales leader in Brazil, ranking among the top three best-selling devices in the country. This pressure on lower-cost models accompanies a change in consumer behavior. In February, the consultancy Gartner predicted that, with the increase in memory and consequently phone prices, consumers would tend to make fewer device upgrades.
Analyses by other consulting firms, such as Omdia and Counterpoint Research, also show a growth in the market share of higher-priced smartphones and present worrying forecasts for the cheapest models. According to these consultancies, the current scenario may benefit older generation flagship smartphones when sold on promotion or in the used market. The crisis has also influenced recent launches and demand for lines such as the iPhone 18 Pro.
