Soaring memory component prices are forcing many smartphone manufacturers to scale back production on budget devices, where thin profit margins make price increases painful to absorb. Samsung Electronics, however, is choosing the opposite path. Rather than shrinking its entry-level footprint, Samsung is ramping up production across its affordable Galaxy A lineup to capture global market share while competitors step back.
According to an internal production plan obtained by Maeil Business Newspaper (MK), Samsung plans to produce approximately 33.7 million Galaxy A mid-to-low-range mobile devices between August and November. That figure accounts for 58% of the company’s total planned output of 58 million handsets and tablets during the four-month window. The figure represents an even higher percentage when considering smartphones alone.
Focusing volume on entry-level models
The bulk of this production drive centers on the most affordable entries in the catalog. Samsung allocated 18 million units specifically to the Galaxy A17 (Review) and the upcoming Galaxy A18, representing 53% of all planned Galaxy A production.
Regional lineups like the Galaxy M series aim at specific markets like India and Southeast Asia. In contrast, the Galaxy A17 and A18 are for the global entry-level segment. The pricing contrast within Samsung’s portfolio remains stark. The Galaxy A17 sells for around 310,000 won (roughly $230 USD), which is about one-eighth the cost of a top-tier Galaxy S26 Ultra with 1TB of storage priced at 2.54 million won.
Prioritizing market dominance over short-term margins
This production drive is in line with recent strategic goals set by Roh Tae-moon, CEO and head of Samsung’s DX Division (Device eXperience Division). He identified market-share expansion as a key priority for the second half of the year. Accepting lower profit margins on entry-level devices allows Samsung’s Mobile eXperience (MX) Division to maintain high shipping volumes while smaller rivals struggle with component costs.
Samsung is currently running a two-pronged strategy. The firm is driving high-margin premium sales through the Galaxy S and Z series while using the Galaxy A series to secure massive shipping volume in the mid-to-low segment. This way, Samsung aims to widen its overall lead as the world’s largest smartphone manufacturer after reclaiming the top global spot in the second quarter.
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