Samsung mobile chief warns division could face full-year losses despite galaxy s26 sales

At a glance:

• Samsung mobile chief TM Roh says the smartphone division may record its first annual loss.
• RAM prices are projected to rise over 80% this quarter, squeezing margins.
• Counterpoint Research reports double‑digit sales growth for the Galaxy S26 in the US and Western Europe.

What the warning means

Samsung’s mobile chief, TM Roh, told senior executives that the company’s smartphone arm could post a full‑year loss, according to a report by Money Today that cites industry sources. This would be the first time the division has posted an annual deficit, marking a stark reversal from the profit‑driven narrative that has defined Samsung’s mobile business for years. The warning follows an earlier notice that the unit had entered “emergency management” mode because of soaring component costs, prompting a 30 % cost‑reduction drive that includes switching to economy‑class flights for staff travel.

Ram price crisis and its ripple effects

The root of the financial strain is a dramatic spike in DRAM prices. Analysts estimate that RAM costs could climb more than 80 % within the current quarter, a surge that forces manufacturers either to raise retail prices or to accept thinner margins. To illustrate the scale, the article notes that NVIDIA’s upcoming Vera AI CPU will ship with 1.5 TB of LPDDR5X RAM, and the Vera Rubin NVL72 supercomputer will house 36 of those CPUs. By comparison, a typical Galaxy S26 Ultra contains 12 GB of LPDDR5X, meaning a single AI supercomputer consumes the memory of roughly 4,600 smartphones.

• NVIDIA Vera AI CPU: 1.5 TB LPDDR5X RAM
• Vera Rubin NVL72 supercomputer: 36 Vera AI CPUs

These figures underscore why component shortages are prompting some consumer‑tech firms to delay or cancel product releases altogether.

Galaxy s26 sales performance

Despite the cost headwinds, the flagship Galaxy S26 series is showing resilience in the market. Counterpoint Research reported that early sales of the new devices outperformed the previous‑generation Galaxy S25, delivering double‑digit growth in both the United States and Western Europe. The strong uptake suggests that premium‑segment demand remains robust, even as manufacturers grapple with tighter bill‑of‑materials budgets.

Outlook and next steps

If RAM prices continue their upward trajectory, Samsung may have to lean further on cost‑cutting measures, such as redesigning devices to use lower‑capacity memory modules or negotiating more aggressive supply contracts. The company’s memory‑chip arm, however, is expected to post record‑high profits, creating an internal tension between the lucrative semiconductor side and the cash‑draining mobile division. Observers will be watching the upcoming quarterly earnings to see whether the loss warning materialises or if the strong S26 sales can offset the component‑price shock.

Conclusion

Samsung’s mobile division stands at a crossroads: a combination of soaring RAM costs and aggressive cost‑reduction mandates threatens profitability, even as flagship sales show encouraging signs. The next few months will reveal whether the company can balance its semiconductor gains with a sustainable mobile business model.