Samsung’s Mobile Business Could See Sharp Profit Drop in Q2 2026

Samsung’s mobile business saw strong performance in Q1 2026 (according to analyst estimates). However, the outlook for the second quarter looks weaker. The division could suffer a sharp decline in profits because of rising memory chip prices and fading cost advantages.

Rising memory prices may threaten profit outlook

In Q1 2026, Samsung’s Mobile Experience (MX) division performed quite well. The unit used its existing inventory of memory chips while increasing the prices of its latest flagship Galaxy S26 smartphones. As a result, it could post an operating profit of around 3 to 4 trillion won, higher than market expectations (in the 2 trillion won range). The official sale and profit figures should be revealed later this month.

Sadly, this positive trend may not carry over into the second quarter. According to ZDNet Korea, the MX business unit’s profitability may drop sharply from the previous quarter. This is mainly because the prices of smartphone memory chips, particularly low-power DRAM (LPDDR), have continued to increase greatly. These chips are key components in smartphones, and higher prices directly raise manufacturing costs.

Meanwhile, Samsung may not be able to sustain strategies that rely on existing inventory for long. This means the company will need to buy newer memory chips at higher market prices, further increasing production costs for its mobile devices. In a worst-case scenario, the MX division could even turn into a loss in Q2.

“The profitability of the MX business unit in the first quarter was much higher than expected, so a significant base effect will be seen in the second quarter,” said an industry official. “If we reflect the upward trend in DRAM prices continuing through the second quarter, we cannot rule out the possibility of a shift to a deficit this quarter.”

In recent weeks, Samsung has raised the prices of some of its smartphones in select markets. The company may continue this strategy in the coming months to defend its profit margins. We have rounded up some of the best deals on Galaxy phones so you can buy easily before possible price hikes.