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      Samsung Electronics Reduces Smartphone Production Amid Supply Chain Challenges

      Samsung Electronics has announced a reduction in its production plan for mid-range and low-end smartphones for the fourth quarter of 2026. This decision is attributed to rising prices of memory chips and disruptions in the supply of glass fiber used in printed circuit board (PCB) raw materials. The company is facing supply shortages and increased costs due to Japan's Nitto Denko reallocating production capacity towards T-glass for AI semiconductors, which has affected the availability of E-glass used in smartphone motherboards.

      The revised production outlook indicates a significant decrease in output, with total planned smartphone production dropping from 31.4 million units to 24.2 million units, a reduction of 23%. Monthly production estimates have been adjusted to 9.9 million units in October, 7.6 million units in November, and 6.7 million units in December. This decline reflects a broader trend, with annual smartphone shipment expectations now at just over 230 million units, falling short of the component industry's forecast of 240 million units and representing a decrease of 20% to 30% compared to earlier projections.

      Despite the cutbacks in mid-range and low-end models, Samsung plans to maintain high shipment levels for flagship devices, such as the upcoming Galaxy S27, and anticipates an increase in shipments of foldable phones. The company's mobile division has reported significant financial losses, with a projected annual loss of 400 billion Korean Won, highlighting the challenges faced in the current market environment.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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