Samsung MX faces potential losses despite Galaxy S26 sales

Samsung Electronics faces a potential financial challenge in its mobile division, Samsung MX, despite strong sales of the Galaxy S26 series. Analysts suggest that rising memory chip prices could lead to a significant loss for the division in the second quarter.

Financial estimates for Samsung MX vary, with projections ranging from a profit of approximately 1.9 trillion won ($1.38 billion) to a loss of 1.5 trillion won ($1.09 billion). Most analysts expect results to fall between a 500 billion won profit and a 1 trillion won loss. If these projections hold, it would mark the division's first-ever quarterly loss, even surpassing the financial impact seen during the Galaxy Note 7 battery crisis.

The primary driver for this potential deficit is the sharp increase in the cost of memory components. Specifically, the cost of RAM in an $800 smartphone has reportedly risen from 14% to 23% of the total cost.

In response to market conditions, retailers have begun offering various discounts and promotional pricing on the Galaxy S26 to maintain consumer interest and boost sales volume.