Samsung's Mobile Division Posts First-Ever Loss Due to Soaring Memory Prices
Higher component costs squeezed budget-phone margins even as flagship sales stayed strong, and Samsung said it will focus on higher-value products.
- Samsung announced its Mobile Division posted a first-ever loss of 800 billion won in the second quarter, despite reporting solid smartphone sales and record overall company revenue.
- Flagship products like the Galaxy S26 Ultra and Galaxy Fold performed well, but Operating profit decreased as rising component costs impacted budget models with already-thin margins.
- Overall, Samsung achieved a record 171.5 trillion in consolidated revenue, as The Device Solutions Division posted a 56 percent sales increase with the Memory Business setting an all-time quarterly high.
- To weather the storm, Samsung plans to launch intelligent eyewear, a Galaxy Tab S12 tablet, and a Galaxy S26 smartphone, targeting at least three new products in five months.
- Jaejune Kim, head of sales and marketing for memory at Samsung, said supply limits will become "more severe in 2027 than 2026," as AI-focused businesses drive demand and memory production exceeds three years.
16 Articles
16 Articles
The explosion in high-performance memory demand for AI has triggered Samsung’s profits, but with an unexpected counterpart in the form of unstoppable cost increases in the production costs of its Galaxy devices...Its mobile division has recorded losses for the first time!
Samsung Electronics’ Device Experience (DX) division turned to a loss in the second quarter of this year. Sales growth failed to translate into profit as prices for memory and key components used in flagship products such as smartphones, TVs, and home appliances surged, while global consumer demand slowed. However, sales for the first half of the year surpassed 100 trillion won for the first time. This was driven by sales of premium smartphones,…
Cost of memory chips pulled the profitability of the smartphone sector to the red. On the other hand, manufacturer profited with semiconductors. Samsung suffers damage with mobile phones for the first time
The global memory crisis RAM reached an unexpected point: Samsung, one of the world's largest semiconductor manufacturers, recorded operational damage in its smartphone business just in the quarter in which its chip division reached a historical result. The problem was not lack of Galaxy in the stores. It was the increase in cost to manufacture them. In the second quarter of 2026, Samsung Electronics reached 171.5 trillion in revenue, about R$ 5…
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