Samsung to cut back on cheaper phones just when people need them most
Samsung is reportedly culling the number of cheap phones it produces at precisely the time when people need them most.
Phones such as the Samsung Galaxy A27 might not win many awards or inspire opinion pieces, but they provide an essential affordable option for vast numbers of people.
Sure, the iPhone Duo is interesting to read about, but these are the phones that people actually buy – especially in these financially constrained times.
That’s why we’re slightly troubled by a new report from South Korea’s ETNews claiming that Samsung is cutting production of its A-series phones by 20%.
This will represent a decrease of 10 million units from last year.
Jon Mundy / Foundry
Samsung’s A-series reduction plan
The reduction plan will apparently apply to the company’s fourth quarter, and forms part of a fundamental shift in strategy to focus on pricey flagship phones such as the Samsung Galaxy S26 and the Samsung Galaxy Z Fold 8.
It seems this shift has been prompted by inflated component prices and raw material shortages (we’ll say it again: thanks AI), which have been placing profit margins under pressure for smartphone manufacturers all year. Those pressures don’t look set to ease in 2027, either.
“The situation is critical as Samsung Electronics’ Mobile Communications (MX) division is suffering a loss this year”, claims an unnamed industry source.
That same source claims that Samsung won’t finish there with its A-series cuts. Apparently, it will cull a further 10% from next year’s production plan.
Samsung’s A-series, currently led by the Samsung Galaxy A57, is responsible for around 70% of Samsung’s smartphone shipments. It plays a major part in Samsung’s enduring position as the leading smartphone manufacturer in the world.
Presumably that will come under threat if the brand is no longer able to offer such a strong mainstream proposition moving into 2027.
