Samsung warns mobile division could lose money for first time ever
Samsung's mobile unit warns of historic annual loss as global RAM shortages drive up costs and delay production. The crisis affects Galaxy devices and could mean higher prices or limited stock in UAE markets.
Samsung's mobile division could report its first-ever annual loss this year, as reported by 9to5Google. Co-CEO TM Roh warned company leaders in April 2026 that the mobile business (MX) faces unprecedented financial pressure due to critical shortages of RAM and storage components.
Key Takeaways
- Samsung's mobile division (MX) could report its first-ever annual loss this year.
- Co-CEO TM Roh blamed shortages of RAM and storage components for the potential loss.
- The same component shortages have affected other tech products like the Steam Deck OLED.
- This would be the first time Samsung's mobile business has lost money annually.
What is causing Samsung's potential mobile division loss?
According to TM Roh's internal communications to Samsung leadership, the primary culprit behind the mobile division's financial struggles is a severe shortage of essential memory components. RAM and storage shortages have disrupted production schedules and increased component costs across the industry.
The shortage stems from surging AI demand for high-performance memory chips, creating a supply crunch across consumer electronics.
Samsung's mobile business has never posted an annual loss since its inception, according to the 9to5Google report. and other upcoming devices face potential delays or higher manufacturing costs due to these component constraints.
Samsung's mobile lineup
TM Roh serves as Samsung's co-CEO, specifically overseeing the mobile experience (MX) division that handles smartphones, tablets, and wearables. He's been with Samsung for over two decades and took charge of the mobile division during a critical period of competition with Apple and Chinese manufacturers.
Roh's warning about the potential annual loss carries significant weight within Samsung, as he's directly responsible for the division's performance. His internal communications to company leaders suggest Samsung is taking the threat seriously and likely exploring cost-cutting measures or supply chain alternatives.
Industry impact beyond Samsung
The memory shortage affecting Samsung extends across the broader tech industry. AI demand for memory chips has created a supply crunch that is rippling through consumer electronics manufacturers.
Frequently Asked Questions
What is causing Samsung's potential mobile division loss?
Shortages in RAM and storage components are cited as the primary reason for Samsung's mobile division facing a potential annual loss. These shortages have increased manufacturing costs and disrupted production schedules.
Who is TM Roh?
TM Roh is the co-CEO of Samsung, specifically overseeing the mobile division (MX). He's been with Samsung for over two decades and is directly responsible for the smartphone and mobile device business.
How will this affect Samsung phone prices in UAE?
Samsung has not commented on specific pricing or availability impacts in the UAE. Buyers should monitor Samsung Gulf announcements.
Is this the first time Samsung mobile has lost money?
Yes, this would be the first annual loss in Samsung's mobile division history. The MX division has been profitable since its inception, making this a significant milestone for the company.
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