Samsung Reportedly Asks Suppliers to Cut Phone Production 20-30% in Q4
Samsung is reportedly seeking a 20% to 30% production cut for the fourth quarter as memory costs squeeze smartphone profitability.
Samsung has reportedly asked its suppliers to reduce smartphone production by 20% to 30% in the fourth quarter of the year, according to androidauthority.com. The request is attributed to rising memory prices and weak profitability in the company's phone business.
The reported production cut would affect output in the final three months of the year, an important window for phone makers. Samsung has not publicly confirmed the request.
The company's smartphones are reportedly generating little to no profit once rising memory and semiconductor costs are taken into account. Memory components are a significant expense in smartphone manufacturing, and higher prices for those parts can weigh on margins.
Quick answers
How much is Samsung cutting smartphone production?
Samsung is reportedly asking suppliers to cut smartphone production by 20% to 30% in the fourth quarter.
Why is Samsung reducing production?
The reported cuts are due to rising memory prices and low profitability in its smartphone business.
Has Samsung confirmed the production cut?
No. The production cut has not been confirmed by Samsung; it is reported by androidauthority.com.