Updated
Updated · SamMobile - Samsung news · Jul 30
Samsung Smartphone Unit Posts KRW 700 Billion Q2 Loss as Memory Prices Squeeze Margins
Updated
Updated · SamMobile - Samsung news · Jul 30

Samsung Smartphone Unit Posts KRW 700 Billion Q2 Loss as Memory Prices Squeeze Margins

3 articles · Updated · SamMobile - Samsung news · Jul 30

Summary

  • KRW 700 billion of Samsung DX’s roughly KRW 800 billion second-quarter loss came from MX, marking the smartphone business’s first loss on record.
  • Rising memory chip prices drove up manufacturing costs and overwhelmed Samsung’s push to protect profitability through higher-end Galaxy S26 sales and efficiency gains.
  • Samsung’s broader results were still buoyed by memory, with the company posting record overall profits even as devices dragged on earnings.
  • Within DX, Visual Display and Digital Appliances lost a combined KRW 10 billion, while Harman offset some weakness with KRW 400 billion in profit.

Insights

Can Samsung’s premium Galaxy strategy and Harman profits offset rising memory costs and weak consumer demand?
Is AI-driven memory demand turning smartphones into a margin trap for Samsung’s Galaxy business through 2027?