For obvious reasons, in Samsung’s latest earnings call the company reported its first loss in its mobile division despite “solid” smartphone sales.
In the breakdown of its earnings for the second quarter of 2026Samsung confirms that its mobile division has posted operating losses year after year. The company blames “increased cost burdens” around “rising component costs.”
In other words, RAMageddon.
Samsung says:
Although MX (Mobile eXperience) saw year-over-year revenue growth driven by strong flagship product sales centered on the Galaxy S26 series and strong A-series sales, operating profits declined due to rising industry-wide cost burdens such as rising component costs.
also It includes televisions and appliances, but smartphones were the main cause of the loss.
Samsung says that in the third quarter it plans to “drive growth” by focusing on “high value-added products” such as its Ultra smartphones and the Galaxy Z Fold 8 series. Flagship smartphones have so far proven more resilient to market conditions, where budget phones are struggling to make profits due to rising costs.
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