Samsung MX faces possible first annual operating loss in 2026

TL;DR:

• Samsung Electronics' mobile division MX could post its first annual operating loss in 2026, according to a South Korean report cited by Jukan.
• The reported main cause is a global RAM shortage that has raised component prices as AI demand increases.
• Current estimates cited by Mobile World Live say Apple captures 75% to 90% of smartphone industry profit, versus 7% to 20% for Samsung.

Samsung Electronics' mobile division MX (Mobile eXperience) could record its first annual operating loss in 2026, according to a South Korean report cited by Jukan and reported by Mobile World Live. TM Roh, who leads the unit, reportedly warned internally about the possibility of an annual deficit in the mobile segment.

The report says a global RAM shortage is the main factor behind the pressure on Samsung's mobile margins. Demand for RAM has increased because of artificial intelligence workloads, which has pushed up component prices, and Samsung had already made internal cuts in the division in March in an effort to limit the impact.

The report places Samsung's mobile outlook in the context of smartphone industry profitability rather than eSIM-specific developments. Mobile World Live cited current estimates that Apple takes 75% to 90% of total smartphone industry profit, compared with 7% to 20% for Samsung, even though iPhone accounts for about 20% of global handset unit sales; if MX ends 2026 in the red, Apple could take almost all sector profit.

Related Questions

Is Samsung's mobile division expected to lose money in 2026?

Yes. A South Korean report cited by Jukan says Samsung Electronics' MX division could post its first annual operating loss in 2026.

Why is Samsung's MX division under pressure?

The reported reason is a global RAM shortage. Higher RAM demand linked to AI has increased component prices and reduced smartphone margins.