For obvious reasons, Samsung’s latest earnings call has seen the company report its first-ever loss in its mobile division despite “solid” smartphone sales.
In the breakdown of its Q2 2026 earnings, Samsung confirms that its mobile division has posted an operating loss year-over-year. The company blames “increased cost burdens” around “rising component costs.”
In other words, RAMageddon.
Samsung says:
Although MX (Mobile eXperience) saw revenue growth year-over-year driven by solid sales of flagship products centered on the Galaxy S26 series and strong sales of the A series, operating profit decreased due to increased cost burdens across the industry, such as rising component costs.
Samsung’s DX division as a whole posted a loss of 800 billion won – $550 million USD~ – which also includes TVs and home appliances, but smartphones were the main cause of the loss.
The writing has been on the wall for a while around this one. Samsung has reportedly been concerned about this for months, with reports in March and April detailing Samsung’s internal talks around the potential loss. It’s a good reminder that even the world’s largest smartphone brand is feeling the impact of the industry’s RAM crisis.
Samsung says that in Q3 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-tier smartphones have thus far proved more resistant to the market conditions, where budget phones are struggling to turn a profit due to the increased costs.
More on Samsung:
- Samsung’s next pair of Galaxy Buds show off open-ear design in another leak [Gallery]
- The best Galaxy Z Fold 8 deal is at Amazon — boosted trade-in plus $350 gift card
- Galaxy Z Fold 8’s wide new design is reportedly selling faster than Samsung expected
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