Samsung mobile segment reported a loss in the second quarter due to increased component costs
(Dan Tri) - Samsung Electronics' phone business recorded an operating loss in the second quarter of 2026 although revenue increased over the same period, due to increased component costs narrowing profit margins.
New Samsung Galaxy Z Fold8 launched (Photo: The Anh)
Samsung Electronics has just announced its business results for the second quarter of 2026 with consolidated revenue reaching 171.5 trillion won (about 119 billion USD), an increase of 28% compared to the previous quarter and the highest level ever. Operating profit reached 89.5 trillion won (about 62.2 billion USD), also setting a new record.
The growth driver comes from the Device Solutions (DS) segment, in charge of the semiconductor business. This division recorded revenue of 127.5 trillion won and operating profit of 89.2 trillion won, thanks to the demand for memory chips serving AI and the increasing trend of memory prices.
Meanwhile, the Device Experience (DX) segment, which includes phones, TVs and home appliances, saw sales decline 9% compared to the previous quarter.
The Mobile and Network Experience (MX) segment alone achieved revenue of 33.2 trillion won (about 23 billion USD) but an operating loss of 700 billion won (about 480 million USD). According to Samsung, this division's revenue increased over the same period thanks to positive results of the Galaxy S26 and Galaxy A series, but profits were affected by rising component costs across the industry.
In the semiconductor segment, Samsung said demand for memory for AI servers such as DRAM, eSSD and HBM is forecast to continue to increase in the second half of the year, while supply remains limited.
The company also said it has expanded its portfolio of high-performance memory products such as HBM4, DDR5 and SOCAMM, and shipped the first batch of HBM4E samples to major customers.
In the second half of the year, Samsung said it will continue to focus on high-end smartphone lines such as the Galaxy Z8 and Galaxy S26, while implementing measures to improve operational efficiency to reduce the impact of rising component costs.
The semiconductor segment will continue to prioritize products serving AI to maintain growth momentum.
Reuters quoted the comments of Josh Gilbert, market analyst at eToro, saying that this development shows that Samsung is being affected by opposite factors from the same factor.
Rising memory chip prices help the semiconductor segment grow strongly, but at the same time increase the cost of producing phones and consumer electronic devices.
According to Engadget, many analysts predict that Samsung's smartphone prices as well as other brands may increase in the near future if the prices of memory and key components continue to remain high, in which the mid-range phone group is considered to be under greater pressure due to the higher proportion of component costs in product prices.