Record Revenues for Samsung but the Mobile Division Could End 2026 in Loss

The memory crisis is creating paradoxes in the tech industry in recent months. Samsung, as a memory producer, is recording record sales but at the same time, with its mobile division (which handles the sale of smartphones and other devices) risks closing 2026 at a loss, despite the excellent sales of the Galaxy S26.

The increase in production costs (related to the rise in memory prices and other components) puts Samsung in a very complicated situation, also considering the fierce competition from Chinese manufacturers who offer generally more affordable prices, even at the cost of selling with reduced margins.

A Paradoxical Situation

Confirmation has come from TM Roh, head of Samsung's mobile division, who, according to a recent report, has warned the company's executives about the possible losses in the smartphone sector due to the memory crisis and the increase in component prices. Such a result would represent the first annual loss ever for the division. However, these figures will be offset by revenues from memory sales, with Samsung playing a very prominent role.

The situation will need to be monitored very closely in the coming months. The Korean company has built a solid range of smartphones and has gained leadership in the first quarter for units sold. In the future, however, the scenario could change rapidly, forcing the Korean company to reckon with the effects of the memory crisis, which is positive for one division of Samsung but extremely negative for the smartphone segment.