Samsung cuts smartphone production by 30% amid rising RAM costs

Samsung is reducing its smartphone production by 30% due to rising costs of components, specifically RAM memory. The company's mobile division has faced significant financial pressure, with reports indicating a $500 million loss in the previous quarter.

The rising price of memory components has impacted profit margins, making it difficult for the division to remain profitable while selling devices at current price points. This situation highlights the tension between Samsung's component manufacturing and its consumer electronics divisions.