Samsung Electronics' smartphone business cut production by 20-30% in Q4 due to soaring memory prices, with full-year shipments potentially falling to 200 million units.
Samsung Electronics' mobile experience (MX) division has requested partners to cut product supply by 20% to 30% for the fourth quarter, according to multiple IT industry insiders. Due to rising memory and semiconductor prices, some industry sources have stated that Samsung is currently "losing money on every smartphone sold." This production cut is larger than market expectations, with full-year shipments now projected to drop from 270 million units to just over 200 million. Data from semiconductor market research firm TrendForce shows that prices for low-power DRAM used in smartphones surged by 175% year-on-year in the second quarter, with an estimated further increase of about 20% in the third quarter. Additionally, Samsung Electronics is set to release its preliminary third-quarter earnings on the 8th, with some brokerages already forecasting an operating loss of 19 trillion Korean Won for the MX division.
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