Samsung Increases Galaxy S26 Ultra Production by 1 Million Units Amid Semiconductor Price Concerns

Samsung is reportedly increasing production of its upcoming Galaxy S26 Ultra by approximately one million units compared to initial plans, according to industry sources in Korea. The company was originally targeting 2.5-2.9 million units for the first two months but has now raised that figure to 3.5-3.9 million units ahead of tomorrow's Unpacked event.

This production increase appears to be driven by strategic considerations rather than optimistic sales projections. Industry insiders suggest Samsung is preparing for rising semiconductor prices later in the year, making it economically advantageous to manufacture and stockpile additional units now while component costs remain relatively lower.

The strategy reflects Samsung's anticipation of increased production costs throughout 2026. By front-loading manufacturing, the company can secure inventory at current price points, potentially improving profit margins on units sold later in the year when component prices may have risen.

This interpretation is supported by the fact that Samsung's total annual production target for the S26 Ultra remains unchanged at approximately 18 million units. The company still expects the Ultra model to significantly outperform its standard and Plus counterparts, with combined production of the S26 and S26+ models projected at only 12 million units.

The production adjustment comes as Samsung prepares to launch what is expected to be its most advanced smartphone lineup yet. The S26 series is anticipated to feature significant AI capabilities, with Samsung already teasing new image editing features ahead of the official announcement.

While the report originates from Korean industry sources, it's worth noting that such production estimates can fluctuate based on market conditions and component availability. Samsung has not officially commented on these production figures, and the company typically maintains flexibility in its manufacturing plans to respond to market demand.

This strategic manufacturing approach highlights the complex economic factors influencing smartphone production, where component pricing volatility can significantly impact manufacturing decisions even for a company of Samsung's scale. The move suggests Samsung is taking a cautious approach to managing production costs in an environment of potential semiconductor price increases.

The Galaxy S26 Ultra is expected to be unveiled tomorrow at Samsung's Unpacked event, where the company will likely provide official details about the device's specifications, features, and availability.