Mobile

Samsung MX Slips into the Red Amid 'Chipflation'… Hopes for a Turnaround in the Second Half with New AI Products

S26 Posts 0.7 Trillion Deficit Despite Strong Performance Due to Rising Component Costs 'Z Fold 8' and 'I-Wear' as Last-Ditch Efforts… All-Out Effort to Defend Profitability

Han Kwangbeom
2026-07-30 09:26:51
SamsungElectronics’ new foldable lineup models. (Photo: SamsungElectronics)


[Edaily Reporter Han Kwangbeom ] SamsungElectronics(005930)While Samsung Electronics posted record-high earnings for the second quarter of this year thanks to the semiconductor boom, its MX (Mobile eXperience) division, which oversees the mobile business, slipped into the red due to rising costs caused by “chipflation.”

According to SamsungElectronics on the 30th, the MX division’s revenue for the second quarter of 2026 was 32.3 trillion won, a 13.3% increase compared to the same period last year (28.5 trillion won). Robust demand for flagship models, led by the Galaxy S26 series launched earlier this year, and strong sales of the A series drove revenue growth.

However, operating profit, which stood at 3.1 trillion won in the same period last year, turned into a loss of 700 billion won. “Chipflation”—driven by rising costs across the industry, including higher global prices for memory and key components—dealt a direct blow to profitability.

The sharp rise in memory prices, which had driven record-breaking performance in the semiconductor division, ended up placing a significant cost burden on the MX division.

Combined revenue for the MX and Network divisions, including the network business, totaled 33.2 trillion won, with an operating loss of 0.7 trillion won.

SamsungElectronics anticipates that component cost pressures and market uncertainty will persist in the second half of the year and is seeking a turnaround by restructuring its portfolio to focus on high-value-added products and optimizing resource efficiency.

The company plans to significantly increase the proportion of flagship sales—led by the top-tier Galaxy S26 Ultra and the new “Galaxy Z Fold8” series of foldables—to expand its smartphone market share (M/S).

The company will also accelerate its leadership in AI technology and the introduction of new form factors. By enhancing the premium value of the entire Galaxy ecosystem through personalized and proactive AI experiences, while simultaneously launching “Intelligent Eyewear”—a next-generation AI device—in earnest, Samsung aims to solidify its market leadership.

At the same time, the company plans to dramatically defend against profitability declines caused by cost pressures by responding nimbly to market conditions and streamlining sales, operations, and resources across the board.

In the Network (NW) division, which is facing difficulties due to the trend of reduced investment by global telecom operators, the company plans to focus on maintaining profitability by actively securing new orders and improving its cost structure.

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