Mobile

Samsung: “Memory Cost Burden Persists… Competition in Foldable Phones Is an Opportunity” [Conference Call]

MX·Network Reports 37.7 Trillion Won in Q3 Revenue and 600 Billion Won Operating Loss Profit Structure Improves, Driven by Top-Tier Models Amid Rising Memory Prices Expanding the Foldable Lineup… Attracting Customers from Competitors and Younger Consumers

Shin Yeong-bin
2026-10-29 12:08:14
[Edaily Reporter Shin Yeong-bin ] SamsungElectronics(005930)is strengthening its sales strategy centered on premium smartphones to address cost pressures resulting from rising memory prices. The company plans to view competitors’ entry into the foldable smartphone market as an opportunity for market expansion and aims to attract customers with slim, lightweight products and a diverse lineup.

SamsungElectronics announced on the 29th during its third-quarter earnings conference call that revenue from its Mobile Experience (MX) and Network divisions totaled 37.7 trillion won. The division posted an operating loss of 600 billion won, marking a shift to a loss compared to the same period last year. However, the loss was 100 billion won smaller than in the previous quarter.
Galaxy Z Fold 8 (Photo: SamsungElectronics)

Revenue and sales volume increased compared to both the same period last year and the previous quarter, driven by the launch of new flagship products such as foldable devices. Although cost pressures rose due to higher prices for key components like memory, profitability improved compared to the previous quarter thanks to a rise in the average selling price (ASP) resulting from an increased share of high-end product sales.

Daniel Araújo, Senior Vice President of SamsungElectronics’ MX Business Division, stated, “Cost pressures are continuing as memory supply has been tight and prices have risen since the fourth quarter of last year,” adding, “We will respond by improving our product mix to focus on high-end models.”

The company anticipates that it will not be easy to drive growth solely through increased sales volume next year. Executive Vice President Araújo noted, “The trend of declining smartphone unit sales but growing revenue will continue next year,” adding, “It will be a challenging environment as the low-end market shrinks and competition intensifies.”

Accordingly, the company plans to improve its profit structure by focusing on top-tier models. Flagship products will increase repeat purchases from existing customers and attract customers from competitors through a differentiated experience, while mid- to low-end products will have their roles redefined within each price segment.

The company will respond to intensifying competition in the foldable market with a strategy of expanding sales in line with market growth. Executive Vice President Araújo noted, “Intensifying competition and overall structural changes are inevitable due to the entry of more competitors,” but added, “We will use this as an opportunity to expand sales in line with market growth.”

Regarding the recently launched Fold 8 series, he explained that the lineup was expanded in a timely manner to meet diverse customer demands. Through this, the company improved its product portfolio with a focus on foldable devices and increased the influx of users from competing brands as well as younger customer segments.

The company will continue to focus on portability and product form factor differentiation. Executive Vice President Araujo stated, “We will emphasize our leadership in thin and lightweight foldables and develop form factors tailored to customers’ lifestyles to provide a differentiated consumer experience.”

The company also plans to reduce the financial burden of purchase through financing programs and expand its premium customer base centered on the Galaxy S26 series and foldables.

MX revenue for the fourth quarter is projected to decline compared to the previous quarter. However, the company plans to maintain sales of the S26 series and foldables through promotional activities timed for the year-end peak season.

Executive Vice President Araujo emphasized, “While a decline in profits is inevitable due to the challenging business environment, we will maintain our strategy of expanding flagship sales and minimize profitability risks through business efficiency improvements.”

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