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Samsung posts first-ever loss in its smartphone division
9to5google.com • • business
Key Points:
- Samsung reported its first-ever operating loss in its mobile division for Q2 2026, despite solid smartphone sales, attributing the loss to rising component costs, particularly RAM prices.
- The Mobile eXperience (MX) division saw revenue growth driven by flagship Galaxy S26 and strong A series sales, but overall operating profit declined due to increased industry-wide cost burdens.
- Samsung’s Device eXperience (DX) division, which includes smartphones, TVs, and home appliances, posted a total loss of approximately $550 million, with smartphones being the primary contributor.
- The company plans to focus on high-value flagship products like the Galaxy S26 Ultra and Galaxy Z Fold 8 series in Q3 to drive growth, as premium models have been more resilient amid cost pressures compared to budget phones.
- Industry-wide RAM shortages continue to impact even the largest smartphone manufacturers, highlighting ongoing challenges in component supply chains.
