Samsung is selling plenty of phones, yet the money may not be there. Reports say the company is making no profit from its smartphone business, even after beating Apple in Q2 2026 to regain the top spot in Counterpoint Research data.
Here is what has been reported, where the numbers come from and what remains unconfirmed. Read more on our Samsung tag page.
Samsung Smartphone Business: Reported Numbers
| Item | Reported detail |
|---|---|
| Q4 2026 production cut | 20-30% requested from suppliers (Money Today, Oct 8, citing industry sources) |
| 2026 production plan | About 270 million, could fall to about 200 million |
| 12GB LPDDR5X RAM chip | About $145 this year, nearly 175% higher than a year ago |
| Flagship price rise | Up to $100 on latest flagships |
| Q2 2026 DX division loss | About $544 million |
| Mobile division share of loss | About $476 million, its first quarterly loss |
| DS division profit Q1 / Q2 | KRW 53.7 trillion / KRW 89.2 trillion |
Why Phones Are Losing Money
The main reason is the rising cost of memory. Samsung reportedly pays about $145 for a 12GB LPDDR5X chip this year, nearly 175% more than a year ago, and Q3 DRAM prices are expected to rise another 20%. Rising RAM and storage costs hit the whole smartphone industry, not only Samsung.
Price Hikes Already Happened
Samsung launched the Galaxy S26 series and the Galaxy Z8 foldables at higher prices, raising its latest flagships by up to $100. Older flagships and mid-range phones also saw sharp increases lately. Buyers are therefore paying more even as Samsung struggles to earn a profit on each phone.
The Memory Side Is Booming
Samsung’s own memory division is doing very well. Its operating profit hit KRW 53.7 trillion in Q1 2026 and rose to KRW 89.2 trillion in Q2, surpassing NVIDIA as the most profitable technology company that quarter. It is estimated to have passed KRW 100 trillion in Q3. In short, the company earns heavily from chips while its phone arm pays more for them.
What It Could Mean for Buyers
If production falls and costs stay high, phones could stay expensive or ship in smaller numbers. Buyers waiting for a discount on Samsung devices may need patience. For company details, see Samsung India and Wikipedia.
What Is Not Confirmed
Samsung has not confirmed the production cut or the claim of zero smartphone profit. The numbers come from a Korean media report citing unnamed industry sources, and one DRAM figure of $180 was not clearly explained. Losses for Q3 and Q4 are expectations, not results.
How Much Is Samsung Really Losing?
The reported Q2 2026 loss of about $544 million for the DX division, with about $476 million from the mobile side, is small beside the memory division’s profit of KRW 89.2 trillion in the same quarter. That contrast explains why Samsung may accept thin phone margins while it earns heavily from selling chips to others. Even so, a first-ever quarterly loss in mobile is a signal that the industry is under pressure. Analysts cited in the report expect losses to grow in Q3 and Q4, but these are projections. We will update this story if Samsung comments or posts its official earnings.
Readers should keep in mind that early reports can change quickly, so we will refresh this article as official information arrives from the companies involved. Until then, treat every figure here as reported and not final, and rely on the official sources linked above before making any buying or planning decision. If you spot an update we have missed, check back soon.
FAQs:
Why Phones Are Losing Money?
The main reason is the rising cost of memory. Samsung reportedly pays about $145 for a 12GB LPDDR5X chip this year, nearly 175% more than a year ago, and Q3 DRAM prices are expected to rise another 20%. Rising RAM and storage costs hit the whole smartphone industry, not only Samsung.
What It Could Mean for Buyers?
If production falls and costs stay high, phones could stay expensive or ship in smaller numbers. Buyers waiting for a discount on Samsung devices may need patience. For company details, see Samsung India and Wikipedia .
What Is Not Confirmed?
Samsung has not confirmed the production cut or the claim of zero smartphone profit. The numbers come from a Korean media report citing unnamed industry sources, and one DRAM figure of $180 was not clearly explained. Losses for Q3 and Q4 are expectations, not results.
How Much Is Samsung Really Losing?
The reported Q2 2026 loss of about $544 million for the DX division, with about $476 million from the mobile side, is small beside the memory division’s profit of KRW 89.2 trillion in the same quarter. That contrast explains why Samsung may accept thin phone margins while it earns heavily from selling chips to others.
