Samsung has lost for the first time in the smartphone division

For obvious reasons, Samsung’s latest earnings call saw the company report a loss in its mobile division for the first time despite “solid” smartphone sales.

In Distribution of profits for the 2nd quarter of 2026Samsung confirms that its mobile division has posted an operating loss for the year. The company blames “increased cost burdens” on “increased component costs.”

In other words, RAMageddon.

Samsung says:

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Although MX (Mobile Experience) Year-over-year revenue growth was seen on the back of solid sales of flagship products based on the Galaxy S26 series and strong sales of the A series, while operating profit declined due to increased industry-wide cost burdens such as rising component costs.

Samsung’s DX division posted a total loss of 800 billion won – 550 million US dollars~ – this also includes TVs and home appliances, but smartphones were the main cause of losses.

This post has been on the wall for a while. Samsung has reportedly been worried about this for months March and April detailing Samsung’s internal negotiations regarding the potential loss. It’s a good reminder that even the world’s biggest smartphone brand is feeling the effects of the industry’s RAM crisis.

Samsung says it plans to drive “growth” in Q3 by focusing on “high value-added products” such as its Ultra smartphones and the Galaxy Z Fold 8 series. Flagship-level smartphones have so far proved more resilient to market conditions where budget phones have struggled to make a profit due to rising costs.