In its latest earnings call, Samsung touted its upcoming AI glasses while also painting a pretty bleak picture of the ongoing RAM crisis.
RAM and storage shortages have affected the entire tech industry with prices everything rises, in some cases dramatically. Even on the scale of Samsung, the world’s largest smartphone manufacturer is not immune to this with its features own set of price increases not too long ago.
In his last earnings callSamsung has repeatedly addressed the issue, saying it believes the problem will worsen in 2027. Samsung executives commented that “AI-related demand” will continue to grow its memory business, but that “supply growth” is difficult due to the “time required for new fab expansions.” In other words, Samsung doesn’t have the ability to immediately address the growing demand for RAM and storage, so the shortages can’t be easily addressed.
Samsung warns that “extremely tight inventory” has led to a record low for demand fulfillment today, and that the gap between supply and demand will “widen even further” in 2027.
We also have very tight inventory and the available supply is far short of customer demand. In fact, our fulfillment rate is now at a record high. And unlike in previous years, customers worried about a lack of supply are actually pushing their demand for 2027. So currently, based on pre-booked demand alone, the supply-demand gap is set to widen further in 2027 compared to this year.
On the mobile side of things, Samsung explains that it intends to “improve cost efficiency” in its smartphone lineup and is also looking forward to its next releases.
This includes a teaser for AI glasses, which Samsung says will offer “immersive multimodal AI experiences.” New folds coming down the line are also mentioned (is expected to debut in July):
MX will continue our strategy of expanding cutting-edge sales through our leadership in developing artificial intelligence capabilities and form factor innovation. For foldable devices, we plan to strengthen our product development to stay ahead of evolving customer needs. For eco products, we will increase high-end sales with more advanced Galaxy AI capabilities and health features, and expand our TWS line. We also plan to deliver immersive multimodal AI experiences through different form factors, such as AI glasses.
2026 will be a challenging year with continued geopolitical uncertainties and profitability affected by increasing cost pressures in the industry. Nevertheless, we will continue to focus on expanding our flagship sales, supported by AI management, and continue our cost efficiency initiatives to minimize the impact on profitability.
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