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ProPakistani
Samsung's Smartphone Business Expected to Suffer Its First Loss Ever
Samsung Electronics is projected to report significant overall profits for Q2 2026, driven primarily by its semiconductor segment. However, the company’s mobile division, the MX division, might face its first-ever loss, with estimates between $364 million and $729 million. This stark contrast is largely attributed to rising costs of memory components, which are increasingly affecting profit margins despite solid sales from the Galaxy S26 series. Analysts suggest that the sharp rise in memory prices has overshadowed any potential sales benefits from new phone models.
MonitorConfidence: MediumShort term horizonSupply chain risk: High
Published 18 Jul 2026, 09:55 UTC3 min read
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Summary
TL;DR
- Samsung's overall profit could reach KRW 89.4 trillion for Q2 2026.
- Possible loss in the MX division marks a significant milestone.
- DRAM and NAND prices have risen, driving up smartphone production costs.
- Components costs are impacting profitability despite strong Galaxy S26 sales.
- Samsung plans efficiency measures to counteract rising material costs.
Interesting facts
- DRAM's share of smartphone component costs increased from 14% to 23% in a year.
- Samsung's mobile division managed profits even during the Galaxy Note7 crisis.
- Higher memory costs might signify broader inflationary pressures on the tech sector.