Memory Boom Squeezes Samsung Galaxy Profits as Component Costs Surge - The Tribune
- Samsung’s record memory-chip sales are projected to help drive its third-quarter operating profit to 107.4 trillion won, while its mobile and networks businesses are estimated to have lost 900 billion to 1.9 trillion won.
- Analysts said smartphone shipments were mostly unchanged and average selling prices rose nearly 3%, but component costs increased faster than handset prices.
- Memory accounted for 43% of a representative premium smartphone’s component costs in the third quarter, up from 14% a year earlier, according to Counterpoint Research estimates.
- Samsung co-CEO Roh Tae-moon said the company would not pass the full cost increase to consumers, while analyst Kim Rok-ho warned that high memory prices would weigh on profitability.
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Memory Boom Squeezes Samsung Galaxy Profits as Component Costs Surge
Get latest articles and stories on Business at LatestLY. Samsung Electronics faces an unusual operational paradox where its record-breaking memory chip sales are directly squeezing profits at its flagship Galaxy smartphone division, according to a news report by The Korea Herald. Business News | Memory Boom Squeezes Samsung Galaxy Profits as Component Costs Surge.
Memory boom squeezes Samsung Galaxy profits as component costs surge - The Tribune
Samsung Electronics faces an unusual operational paradox where its record-breaking memory chip sales are directly squeezing profits at its flagship Galaxy smartphone division, according to a news report by The Korea Herald.
According to some rumors, Samsung asked suppliers to reduce the production of smartphones to protect profitability, put at risk by increasing memory costs.
Samsung cuts the production of smartphones by 20-30% in Q4 2026: the price of RAM exploded by 175% in a year. That's what's happening.The article Samsung would have cut the production of smartphones by 20-30%: better to sell less of these times! seems to be the first on Smartworld.
Samsung doesn't want to produce smartphones that generate little profit. The company wants to reduce the number of devices manufactured in the fourth quarter by up to 30 percent.
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