Samsung cuts Galaxy output amid internal RAM pricing dispute

A substantial decrease in smartphone manufacturing is planned by Samsung Electronics for the current quarter, driven by a fierce internal disagreement regarding component costs. The company’s mobile division and its memory chip unit are locked in a standoff over the pricing of RAM modules required for Galaxy devices.

The core of the production conflict

This operational friction stems from the complex relationship between Samsung’s two key business arms. While both units operate under the same corporate umbrella, they function as separate entities with distinct profit targets. The memory division seeks higher margins on its components, whereas the mobile division aims to keep device manufacturing costs low to maintain competitiveness in the global market.

Impact on quarterly output

The unresolved pricing battle has directly influenced production schedules. By reducing the number of phones manufactured, the mobile unit appears to be leveraging its purchasing power or adjusting inventory levels in response to the elevated component prices demanded by the memory sector. This strategic cut highlights the tangible consequences of intra-company negotiations failing to reach a consensus.