Samsung recently increased the prices of all its phones, including low-end, mid-range, and high-end models. However, that may not be enough to combat rising manufacturing costs, as the South Korean firm is reportedly planning to make 20% fewer mid-range phones.

A report coming out of South Korea claims that Samsung is cutting the production of its mid-range Galaxy A series phones by as much as 20% in the fourth quarter of this year (Q4 2026) due to rising component costs. The prices of memory chips, such as RAM and storage, have multiplied over the past year, significantly raising the total manufacturing cost.

Even after hiking phone prices, Samsung is unable to sustain these higher chip costs. As a result, the company has reportedly decided to move resources (memory chips) away from the Galaxy A series to high-end devices like the Galaxy S and Galaxy Z series, which will provide higher profit margins and a better chance of reducing losses.

Historically, the Galaxy A series makes up the highest share of Samsung's smartphone sales, accounting for over 70% of its total phone shipments. Cutting the production of these phones could lead to fewer overall sales compared to Apple, its closest competitor in terms of shipments. Consequently, the iPhone maker could easily grab the number one rank from Samsung.

Analysts expect smartphone prices to rise further next year. There is also a chance that newer phones will launch with downgraded specifications, such as cheaper cameras and displays.