Samsung Mobile may record its first loss of the year due to rising device production costs, according to a Korean media report. TM Roh, head of Samsung's mobile business (MX), expressed concern about a deficit this year despite consistently posting profits.
Device sales profit margins in 2026 will shrink due to the sharp increase in RAM and storage costs driven by demand for artificial intelligence (AI) data centers. Although Samsung Semiconductor produces its own memory and storage chips, the prices of components purchased by MX are still higher than the previous year.
Like other memory companies, business customers who order memory for AI are given priority because they are willing to pay high prices and place larger orders than customers who manufacture electronic devices. Samsung Electronics' profit last quarter jumped more than 700% compared to the previous year, all due to the memory business having higher demand than production capacity.
It can already be seen that the selling prices of the Galaxy S and Galaxy A series this year are sold at prices up to RM600 more expensive. In the United States, prices for last year's Galaxy S25, Galaxy Z and Tab S series have also been raised due to component costs.
Samsung is still the world's largest smartphone manufacturer in Q1 2026, with Apple in second place. This top position is still not enough to avoid losses, raising questions about what the situation will be for other manufacturers this year.
