Samsung Galaxy Cornered by Chipflation and Apple Foldable Assault
AI-summarised brief · reviewed before publication
Samsung Electronics' smartphone business faces continued headwinds due to soaring memory component prices and Apple's entry into the foldable phone segment. The company's Mobile eXperience division posted a 35% decrease in operating profit in the first quarter, despite a 3% revenue increase. Profitability deteriorated due to surging costs for DRAM and NAND flash memory, which offset sales boosts from the Galaxy S26 launch, a trend expected to continue.
💡 Why It Matters
- · Apple's entry into the foldable phone market threatens Samsung's profitability, as foldable phones have a smaller memory cost share and are less affected by price increases.
- · Samsung's market share is expected to decline to 31% this year from 40% last year.