Samsung's mobile division may see its first-ever annual loss this year

Last month, a Korean publication claimed that Samsung’s mobile division, MX, may report its first-ever loss in the second quarter of this year, mostly due to profitability being hit by rising memory prices. Now, it looks like the higher management is expecting even worse results.

According to Money Today, Samsung’s Head of MX  Division, Roh Tae-Moon, has informed the management that the mobile business faces the possibility of an annual deficit. If that turns out to be true, it could be the first annual deficit of the MX division since its inception.

Samsung’s latest non-foldable flagship smartphone, the Galaxy S26 series, has been breaking sales records, bringing in a lot of revenue for the brand. In addition to that, the company has increased the prices of multiple of its smartphones to offset the increasing memory prices. Unfortunately, none of that seems to stop the company’s profitability from going down.

That being said, Samsung’s overall profit surged eight times in Q1 2026, as its memory business boomed due to rising memory demand. It is not only Samsung that is facing a loss in the mobile business. Many other smartphone brands are also facing a similar situation. The market may improve only when the supply and demand for memory chips are regulated.