Samsung Electronics is expected to report record-breaking profit for the second quarter of 2026, but its mobile division may tell a very different story.
According to DealSite South Korea analysis, Samsung’s MX division could report anything from a KRW 1.9 trillion profit to a KRW 1.5 trillion loss for Q2 2026. The most likely estimate, however, indicates a loss of $364 million to $729 million.
Samsung’s overall business is benefiting from the sharp rise in memory chip prices.
Reuters reported that Samsung estimated Q2 operating profit of KRW 89.4 trillion, or about $58.44 billion, marking a 19-fold jump from a year earlier. The company’s revenue is also expected to rise to KRW 171 trillion.
The main driver is Samsung’s semiconductor business. AI demand has pushed up prices for DRAM and NAND, helping the company’s chip division deliver much stronger earnings. Reuters noted that DRAM and NAND prices continued to rise during the quarter as demand expanded beyond high-bandwidth memory into conventional memory products.
The same memory boom that is helping Samsung’s semiconductor division may be hurting its smartphone business.
Samsung MX relies on DRAM and NAND flash storage for its phones. As those components become more expensive, the production cost of each device rises. DealSite reported that non-memory and mobile weakness was masked by the strength of Samsung’s memory business in Q2.
Market analysis cited by Sammy Fans says DRAM’s share of premium smartphone component costs has increased from 14 percent a year ago to 23 percent. NAND flash storage costs have also continued to move higher.
The possible loss is notable because Samsung’s Galaxy S26 series has reportedly performed strongly.
However, analysts believe stronger sales may not be enough to offset higher memory costs. Sammy Fans reported that some analysts now believe those higher component costs were fully reflected in Q2, weakening the MX division’s profitability.
Samsung had already warned earlier this year that its mobile business faced cost pressure. In its Q1 2026 results, the company said the MX and Networks businesses posted KRW 38.1 trillion in revenue and KRW 2.8 trillion in operating profit, but it also said the MX business would pursue efficiency measures to reduce the impact of rising costs.
If Samsung MX posts a loss, it would be a major milestone for the company’s phone business.
Even during the Galaxy Note7 battery crisis in 2016, Samsung’s mobile division still managed to report a small operating profit. Samsung said at the time that its IT and Mobile Communications division’s earnings declined due to the Galaxy Note7 discontinuation, while Sky News reported that the division’s operating profit dropped almost 98 percent to 100 billion won.
That makes a possible Q2 2026 loss especially significant, because it would suggest that component inflation is now creating pressure even stronger than one of Samsung’s worst mobile product crises.
Samsung has not yet released its final divisional results for Q2 2026.
The company is expected to announce detailed earnings on July 30, including a breakdown by business division. Until then, the mobile division’s possible loss remains an analyst estimate, not an official result.
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