Samsung is suffering the consequences of global memory crisisalso known as ‘RAMmageddon’to the point of considering a significant reduction in its production of mobile phones. According to Money Today, the manufacturer has asked its suppliers to cut production volumes by 20% to 30% during the last quarter of the year because the increase in the cost of components is leaving its profit margins practically at zero.
He half south koreanciting several industry sources, claims that the division Mobile Experience (MX) Samsung has already communicated this decision to its suppliers. One of these sources assures that the company barely makes any profit with their phones after deducting the cost of memories and other semiconductors, so they prefer manufacture fewer units rather than continue reducing profitability.
Initial forecasts indicated that Samsung would manufacture 270 million of smartphones during 2026. However, Money Today points out that annual production could end up being a little above the 200 millionwell below expectations and approximately 240 million of phones manufactured in 2025.
The production of the South Korean technology company usually decreases in the last quarter of the year because many consumers prefer to wait for the new Galaxy S that arrive at the beginning of the next. However, the cut that I would be preparing now is considerably higher than usual and responds mainly to the increase in manufacturing costs.
The origin of the problem is in the enormous demand for memory for data centers dedicated to artificial intelligence. Semiconductor manufacturers are prioritizing the most profitable products, which are those for servers and AI accelerators, which has been reducing the availability of memory for computers, mobile phones and other devices for a year.
According to data from the consulting firm TrendForce collected by Money Today, the price of 12GB LPDDR5X RAM for smartphones reached $146 during the second quarter of 2026, about 125 euros. This represents an increase in the cost of 175% compared to the previous year and the forecasts point to another increase close to the 20%I would put them at 180 dollars, about €155.
Samsung had already passed on part of the increase in costs to consumers in February with the launch of the Galaxy S26. In Spain, the standard 256 GB model went from 969 euros from his predecessor to 999while the Galaxy S26+ became more expensive €90 until reaching the 1,249.
Samsung has raised the prices of these devices again this month, seven after launch. The Galaxy S26, S26+ and S26 Ultra increased by about 100 euros in their 256 GB versions in Spain. The biggest jump was with the 1 TB Galaxy S26 Ultra, whose official price now reaches 2,149 euros, €200 more, although it is possible to find them with discounts.
Paradoxically, Samsung is also one of the great beneficiaries of this crisis thanks to its memory manufacturing business, whose profits are growing due to demand from the AI industry. However, this same price increase harms its mobile phone division, which could now be forced to considerably reduce its activity to avoid losses.