Media sources, such as SammyGuru report that South Korean Samsung's mobile phone unit would be turning unprofitable for 2026.
If the forecasts are correct, 2026 would be the first time in the entire company's history that its mobile phone business would be unprofitable on an annual basis.
According to South Korean information (in Korean), the problem is that, for example, memory chip prices continue to rise, and companies selling products to consumers, such as Samsung's mobile phone unit, cannot raise prices charged to consumers at the same pace.
This year, a situation will likely be seen where upcoming mobile phone releases will feature less operating memory (RAM) and storage than before.
Of course, someone also profits from rising prices: Samsung is a gigantic conglomerate and at the same time, it is also the world's largest manufacturer of memory chips. And Samsung's memory business is now so profitable that Samsung as a whole is rising to become the world's highest-earning company.
But each unit operates on its own terms, and for example, Samsung's mobile phone unit has already banned business class flights and unnecessary travel for its executives. In addition, according to South Korean sources, layoffs are being planned in the unit.
Written by: Petteri Pyyny @ 26 Apr 2026 12:06
