Samsung faces component cost pressures and potential hardware downgrades

Samsung is reportedly considering hardware downgrades for future mid-range devices to combat rising component costs. Rumors suggest the upcoming Galaxy A38, expected in 2027, may feature an inferior screen—potentially reusing the panel from the more basic Galaxy A27—to offset the increasing prices of memory chips.

This strategy comes amid a broader market slowdown and rising production expenses. Samsung has recently communicated a reduction in component orders to suppliers, with monthly production forecasts dropping from 31.4 million to 24.2 million units, a decrease of approximately 23%. These rising costs are already impacting retail prices, as seen with the Galaxy A37, which launched at a higher price point than its predecessor.