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Engadget
Samsung's mobile division posts first-ever loss due to soaring memory prices
Samsung's mobile division has reported its first ever loss of 800 billion won ($544 million) in its latest fiscal quarter, despite achieving record sales figures in smartphones. This downturn is largely attributed to soaring memory prices caused by increased demand linked to the AI boom. The company plans to pivot towards high-value product lines to mitigate cost burdens and navigating rising expenses, particularly for budget models. As component costs soar, consumers can expect price increases across all smartphone categories in the coming quarters.
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Published 30 Jul 2026, 08:25 UTC2 min read
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Summary
TL;DR
- Samsung's mobile division reports a loss for the first time in its history.
- Solid sales of flagship products were overshadowed by high component costs.
- The company's overall revenue reached an all-time high of $119 billion.
- Samsung's Device Solutions division posted record profit despite mobile losses.
- Smartphone prices are expected to rise, impacting low-income consumers the most.
Interesting facts
- Samsung's losses primarily stem from its mobile division, despite the overall revenue growth.
- The surge in memory prices is closely tied to the recent growth in AI technologies.