Samsung’s Mobile Division Faces First-Ever Annual Loss as AI Memory Boom Drives Costs Sky-High
channelnews.com.au Apr 24, 2026

Samsung’s Mobile Division Faces First-Ever Annual Loss as AI Memory Boom Drives Costs Sky-High

AI-summarised brief · reviewed before publication

Samsung's mobile division may post its first annual loss in 2026 due to surging memory prices driven by global AI demand, despite strong device sales. The cost of DRAM and NAND memory has increased, accounting for over 40% of total component costs in flagship models. This has created a supply crunch, pushing prices higher and forcing smartphone makers to absorb costs or pass them on to consumers, affecting Samsung's profitability.

💡 Why It Matters

  • · Rising memory costs threaten Samsung's ability to maintain profit margins, while its semiconductor arm benefits from the same trend, highlighting an internal contradiction.