[Exclusive] "There is no profit even if we sell"…Samsung to cut smartphone production by 30% - MoneyToday

This makes sense in the short run, but with their market share already under pressure from Apple this sounds foolish in the long term. It would seem to be a better strategy to sell, even at a loss, and make up the difference even from memory sales. Having greater smart phone market share would pay dividends when the memory demand eventually fizzles out as it always does as a boom and bust market.

Mejor centrarse donde está el ROI

Nah, phone sales are expected to drop significantly across the board. Entire lines of cheap phones will evaporate entirely. Because of that, total sales might go down, but percent of market will likely increase for samsung and apple, but profitability would also collapse as well except for their higher end models. Their highest end models cost $2,500 already.

Ah yes but corporate doesn't think like that. The department head of phones is just worried about their PnL and same for the memories. And anyone above them is usually very stupid.

It’s tough because Samsung is made up of a bunch of different companies internally (ex: Samsung Display) and they handle business pretty independently from another. So I don’t think revenue from one could be supporting another.

Apple is also cutting production though.

Good release the memory chips to the world

Sorry best we can do is release the chips to Claude

Best youre going to get is $1 off chips at Chipotle.

once it merges with Starbucks it'll be known as Otle

Lol those fabs are busy making memory for nvda.

Man I hope this makes Apple moon on Monday. Pleaasssseeeeeee

Apple already announced today that it was cutting production of iPhone 18 Pro by at least fifteen percent: https://www.macrumors.com/2026/10/09/appl…

I saw that, I'm hoping Samsung cutting twice that amount means Apple is perceived as being in a healthier position. But with my luck it'll make apple appear as not cutting enough

Are they in a race now who cuts more?!

There will be a race of smartphone prices to the moon, 2k for your average smartphone, 5k for the top tier.

It’s the same rumors we get every year lol

Apple didn’t announced anything, that’s clearly a Macrumors article based on a media outlet report…

Pretty sad all people care about is their few shares to go up. When it’s pretty obvious if there’s less competitors, prices will go even higher. Guess it explains the real reason why Apple has been going up non stop the last few weeks despite Ternus being unproven as ceo

So what impact will cutting smartphone production by 30% have on memory?

Probably not much. The demand for memory is so high this small reduction will not register in the memory market. Someone will buy that memory as demand outstrips supply,

Doubt any, android phone are one in a million, I use an S25 Ultra and I can tell they are mediocre at best, Xiaomi, Honor and other already have better phones than these, so the stock will go up because memory will sell better, the Samsung market will be the same

Short term it frees a bit of phone DRAM, but that is not the main story. Money Today says Samsung asked suppliers to cut phone builds by up to 30 percent this quarter because memory prices jumped about 175 percent over the year and the handsets stopped making money. Memory still gets bought by AI servers either way. Cutting phone units is Samsung protecting phone margins, not a soft demand signal for chips.

That’s probably for the best. I sold phones for like 6 years and the amount of exploded or melting Samsungs was kind of scary. At least once a month I’d have to send out a Samsung in a special “ground shipping only” box. Never had to do that for a single iPhone.

If only more people would start keeping their phone for more than a year

Maybe it's because I don't buy top of the line or flagship phones, but I've always found them reliable. Still using the same M31s for almost 6 years now. I don't see a reason to change from this phone either, does all the things I need it to.

My Motorola one 5g ace is 5 years old and is fine

i wonder if the 30% cut is just a quick cash‑mere fix for the high memory price glut. even though the memory arm made $80B, the mobile unit’s margins are capped by market‑price components. without a proper transfer‑pricing review this feels like shooting yourself in the foot instead of boosting the flagship side of the business.

Memory margins getting squeezed that hard while the other side prints 80bis wild, component costs really eating the whole device sector alive right now.

Simplify the lineup, they've spin-off into far too many layers of budget

Their phones are getting ridiculously expensive. Probably that's where they need to think. Lower phone pricing and instead of releasing new phone model every couple of month focus on quality phones.

Yeah, whenever I bought a Samsung it didn’t last for more than a year. Sometimes mot even that. I wish Nokia was back… until then I am stuck with my iphone

I'm using s23 series phone. Every year I wait for new ultra to launch to get new phone. Every year I gets disappointed. My s23 is good a new s26. They just stopped at innovation and more focus on AI things. Only 2 things increase every year processor capacity and price.

Yeah, I'm still rocking my 5+yo s21 ultra. I may upgrade to an S23 Ultra if this dies on me, but there's really no reason anymore.

Correct. There's is no reason to upgrade to new model. It's so expensive

Theres no improvements beyond the s23 ultra?

Samsung a decade used to be the phone to get if you weren't an apple person. The issue is over the past decade.... they are just kind of pricey compared equally good phones. If they aren't really making money at that price point yeah I think China is the new home of the low cost decent smart phone. Xiaomi phones are actually pretty good for the price. I bought the xiaomi redmi 13 2 years ago and honestly teh phone has held up. It was a budget phone even back then and it is starting to slow down as you would expect of a budget phone, but super happy with the buy. It doesn't feel like a low quality product at all. The only issue is, not sure if it is android version of something samesun does or if it is the hardware... I do think samesung is better made, the xiaomi I have the screen on rare occasion doesn't register the tap where I am tapping and I have to restart. But honestly the extra 25% for a samsung just isn't worth it.

Samsung makes more than 50 different smartphones worldwide. The article doesn’t specify which smartphones production they are cutting down…. Why do people just assume that samsung is cutting production on their flagships is beyond me, lol. I guess people wants to hear whatever they want to hear…

I thought Samsung makes dram?

Maybe Samsung shouldn't make so many different skews of its products. Phones, TVs... Pretty much everything they make they create so many different variations.

Apple was cutting buying contracts for phone components as well. Looks like no one can afford to buy these overpriced rehashes anymore.

naw they make money on everything they sell