According to the South Korean media outlet Money Today, which reported the information on Thursday, October 8, Samsung's mobile division has reportedly asked its suppliers to slow down smartphone production in the fourth quarter in order to address the memory crisis. The reduction would affect 20 to 30 percent of the volumes planned for the fourth quarter. While Samsung was expected to produce up to 270 million smartphones this year, its annual total could ultimately cap at just over 200 million, according to Money Today, as reported by Android Authority. A slowdown in production at the end of the year is somewhat usual for Samsung, which unveils its new Galaxy S models in January or February and often sees demand drop in the last quarter. According to Money Today, the decline expected this time, however, exceeds what the market anticipated. "Due to the increase in memory and semiconductor prices, Samsung Electronics smartphones currently generate no profit when sold," summarized a source interviewed by Money Today. According to the firm TrendForce, cited by Money Today, 12 gigabytes of LPDDR5X memory for smartphones cost about 145 dollars (approximately 130 euros) in the second quarter, which is 175 percent higher than a year earlier. The firm expected a further increase of about 20 percent in the third quarter, up to 180 dollars (approximately 160 euros). For Samsung, the profitability of the entire mobile division is at stake. Without margins to compensate, every smartphone that remains on the shelf becomes a direct loss for Samsung: it is better to produce fewer. Samsung is not the first to slow down. At the end of June, Nikkei reported that Xiaomi, Oppo, and Vivo had warned their suppliers of target reductions of up to 30 percent for 2026. At that time, Xiaomi aimed for 95 million smartphones, compared to 170 million the previous year, and Oppo and Vivo were targeting less than 90 million units each. Samsung, both a victim and an executioner. Paradoxically, Samsung is contributing to this situation. The South Korean chaebol actively participates in the memory crisis, as its Samsung Semiconductor division is said to have reserved 70 percent of its memory production for Nvidia, Microsoft, and Google until 2031. To such an extent that the distribution agreements between this division and the mobile division are no longer guaranteed. On paper, Samsung should have been better equipped to withstand the shock than its competitors. TrendForce estimated that its vertical integration, as a major memory manufacturer, would work in its favor. On the other hand, memory now accounts for 30 to 40 percent of the cost of smartphone components, compared to historically 10 to 15 percent, according to the same firm. Skyrocketing RAM prices: Samsung, SK Hynix, and Micron accused of having organized the shortage. Samsung has not officially confirmed these reports, so it is advisable to take this information with caution, but in any case, the memory crisis seems to be making the smartphone market increasingly unstable, particularly the entry-level segment, which is suffering the most.