Samsung’s smartphone division (MX) could face its first annual loss, even as its memory business posts record results – both driven by soaring DRAM and NAND prices.
Rising memory costs are pushing flagship phone production expenses up by $100–$150, significantly hurting margins. This comes despite strong sales of the Galaxy S26 lineup, especially the Galaxy S26 Ultra, and Samsung leading global shipments.
The core issue is booming demand for memory in AI infrastructure, which is driving up prices. Samsung is now shifting production toward newer LPDDR5 memory to capitalize on this trend, even as it puts pressure on its mobile profits.
Source: GSMArena
