Samsung is increasing the production of affordable Galaxy A smartphones despite rising memory component costs. The company aims to strengthen its global market position by maintaining high shipment volumes while competitors reduce budget model output due to lower profitability.
According to a production plan obtained by Maeil Business Newspaper, Samsung intends to produce approximately 33.7 million mid-range and entry-level Galaxy A devices from August to November. This represents 58% of the total planned output of 58 million smartphones and tablets for the same period.
The majority of production will focus on the most affordable models. Samsung has allocated 18 million units for the Galaxy A17 and the unannounced Galaxy A18, accounting for 53% of the total Galaxy A output. These devices target the global entry-level price segment.
The strategy follows priorities set by Roh Tae-moon, head of the Samsung DX Division, to increase market share in the second half of the year. Samsung is prepared to sacrifice some profit from budget devices to maintain shipments while rising component costs pressure smaller competitors.
The company is pursuing a dual approach: the Galaxy S and Galaxy Z series provide high-margin earnings, while the Galaxy A series ensures mass shipments in the same and entry-level segments. This follows Samsung's return to the first place in global shipments in the second quarter.
