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The Verge - Tech
Samsung’s smartphone biz posts first ever loss, but profit still soars 1,300 percent on RAM.
Samsung's smartphone business has reported its first-ever operating loss due to the soaring costs of components driven by AI hype. In sharp contrast, the memory chip sector is thriving, earning approximately $49.64 billion in a quarter. This division accounted for over 99% of Samsung’s operating profit, illustrating a split impact within the company amidst broader market challenges.
MonitorConfidence: MediumShort term horizonSupply chain risk: High
Published 30 Jul 2026, 07:05 UTC1 min read
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Summary
TL;DR
- Samsung's smartphone division posts its first loss.
- Memory chip profits increased by 1,300%.
- Chip costs affecting various product lines.
- 99% of operating profit came from memory chips.
- AI hype contributing to component price increases.
Interesting facts
- The smartphone industry's loss is unprecedented for Samsung.
- Memory chip sales are projected to sustain high profits through 2028.
Coverage gaps
- Long-term outlook for Samsung's smartphone strategy.