Samsung Mobile Chief TM Roh Warns of Potential First-Ever Smartphone Loss in 2026 Amid DRAM and NAND Price Surge
Samsung's mobile division is facing an unprecedented threat. TM Roh, head of Samsung MX (Mobile Experience), has privately warned company leadership that the company could record its first net loss on smartphones in 2026, according to a report by Korean financial outlet Money Today. The warning is notable because Samsung has historically maintained profitability in its mobile business even through periods of severe economic turmoil, pandemic-era supply chain disruptions, and industry-wide component shortages.
The core issue lies not in demand but in production costs. Despite strong anticipated sales of the Galaxy S26 lineup, Samsung faces mounting pressure from skyrocketing prices for DRAM and LPDDR5x memory alongside NAND flash storage. These critical components have seen shortages that have rippled across the consumer laptop and server markets, and Samsung's own semiconductor division is caught between serving internal needs and external customers. The company manufactures both its own mobile chips and relies on memory produced within Samsung's broader semiconductor operations, creating a complex internal pricing dynamic that may not fully shield the mobile unit from market-rate cost increases.
The warning signals broader structural stress in the premium smartphone market. As devices have matured, manufacturers face shorter upgrade cycles and intensifying competition from Chinese brands. Samsung's ability to weather cost storms while competitors have exited or scaled back suggests the company retains pricing power and market share—but the combination of elevated component costs and the capital-intensive demands of on-device AI integration could fundamentally alter the unit's economics. Industry analysts have noted that building AI capacity into handsets adds both BOM (bill of materials) cost and R&D expense, squeezing margins at a moment when component pricing is already unfavorable. The outcome of 2026 negotiations and component availability will likely determine whether Samsung's smartphone streak survives or ends.