As AI continues to eat up the market’s RAM output, smartphones are in crisis as costs continue to skyrocket. A new report claims that Samsung is increasingly worried about this, and warning of its first-ever loss in its mobile division.
We’ve heard this before. In March, a report revealed some of the internal cuts Samsung has been making for its mobile division, with the company initially concerned it could post an operating loss for the first time ever. It’s a big deal, as Samsung’s mobile (MX) division has historically always turned a profit.
A new report out of Korea (via Jukan) makes this seem all but certain.
Apparently, Samsung’s TM Roh, the head of the company’s mobile division, has expressed concerns of the “possibility of an annual deficit for the MX business unit.” Previously, those concerns came from speculation and outside parties, but with such a high figure in Samsung’s organization worried, it’s clear things are looking pretty bleak.
The smartphone market as a whole is in turmoil, as increasing costs for RAM and storage affect the price of new devices. Low-cost Android devices have been especially affected, with price hikes described as “inevitable.” We’ve seen some of those price hikes already, from brands including Motorola and even Samsung.
More on Samsung:
- Samsung’s next pair of Galaxy Buds surface with apparent open-ear design
- Galaxy Tab A11+ Kids Edition is now available for $349, but you can already get it for less
- Samsung says Galaxy S26 vertical camera is a ‘core identity’ — it’s also a core problem
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