Samsung Electronics anticipates record-breaking profits for Q2 2026, primarily driven by its semiconductor business. However, the mobile division may encounter its first-ever quarterly loss. Analysis from DealSite South Korea suggests that Samsung MX's earnings could fluctuate between a profit of KRW 1.9 trillion ($1.38 billion) and a loss of KRW 1.5 trillion ($1.09 billion), with the most likely outcome indicating a loss ranging from $364 million to $729 million.
This development may come as a surprise given the robust performance of the Galaxy S26 series. However, rising memory chip prices have significantly impacted Samsung's profits, a factor that may not be unexpected for industry observers.
Notably, even during the infamous Note7 battery crisis, the mobile division managed to record a modest profit of $73 million.
Current market analysis reveals that the cost of RAM chips for an $800 phone has increased from 14% to 23%, while NAND flash storage now constitutes 15% of the overall production cost.
