[News] Samsung Reportedly Plans Over 70% of Galaxy S27 Production for Pro, Ultra in 2027 Amid Rising Memory Costs

Samsung Electronics is reportedly planning to increase the share of premium models in its Galaxy S27 lineup as rising component costs put pressure on smartphone profitability. According to ETNews, citing industry sources, the company aims to allocate more than 70% of Galaxy S27 production to the Ultra and newly introduced Pro models in 2027, prioritizing higher-margin devices.

The strategy is designed to steer customers who might otherwise choose the standard or Plus models toward more expensive options. By maintaining Ultra production while allocating approximately 20% of total output to the Pro, Samsung aims to increase the share of premium devices within its flagship lineup, the report notes.

Samsung typically produces around 35 million Galaxy S series smartphones annually, with this year’s Galaxy S26 lineup following a similar production plan. The Ultra accounts for roughly half of that volume, or approximately 18 million units. The company is expected to maintain a similar overall production volume for the Galaxy S27 series next year. As ETNews reports, Samsung plans to produce around 18 million Ultra units and an additional 7 million to 8 million Pro units.

Rising Memory Costs Squeeze Samsung’s Smartphone Margins

Samsung is reshaping its flagship lineup to support the shift toward premium models. According to the report, the upcoming Galaxy S27 Pro is expected to offer most of the Ultra’s features in a smaller form factor, but without stylus support. The Pro and Ultra will make up Samsung’s premium lineup, expanding its higher-end offerings from one model to two. The shift follows Samsung’s decision to cut Galaxy A series shipments by 20% in the fourth quarter of 2026, reducing production of lower-margin smartphones, the report adds.

Samsung’s shift toward premium smartphones comes as its mobile business struggles with profitability. As previously reported by Seoul Economic Daily, Samsung’s Mobile eXperience (MX) business remained in the red in 3Q26, posting an operating loss of approximately KRW 600 billion, narrowing from KRW 700 billion in the previous quarter. Despite strong foldable smartphone sales, rising memory costs continued to weigh on profitability.

The scale of rising component costs is also reflected in Samsung’s financial disclosures. According to ChosunBiz, citing Samsung‘s 2026 half-year business report, procurement prices for mobile memory surged approximately 211% compared with the 2025 annual average, while mobile application processor prices rose by only around 6%.

The broader smartphone industry is also facing growing pressure from rising memory costs. According to TrendForce, higher mobile DRAM prices and dwindling inventories of lower-cost components are weighing on smartphone production. Meanwhile, memory suppliers are prioritizing higher-margin AI and server applications, keeping mobile DRAM supply tight and prices elevated.

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(Photo credit: Samsung)