Samsung to cut smartphone production by 70 million units to boost profits

It's now official: consumers will pay significantly more for their smartphones this year. A dramatic move by Samsung illustrates the economic trap facing the global smartphone industry. The world's largest smartphone manufacturer has instructed its component suppliers to aggressively cut production volumes by 20% to 30% ahead of the final quarter of the year, according to international reports following the quarterly report released Wednesday night. In practical terms, the move means reducing Samsung's annual production target from approximately 270 million devices to just 200 million, eliminating tens of millions of units from its production lines. Behind the unusual move is a surge in the prices of memory chips (DRAM) and semiconductor components, which have risen by more than 170% amid enormous demand from the artificial intelligence industry.