Samsung’s DX division, which includes mobile, posted its first-ever loss of 800 billion won in the second fiscal quarter, despite solid smartphone sales. The loss was driven by soaring component costs caused by the AI boom.

The mobile MX category suffered most, even though flagship models like the Galaxy S26 Ultra and Galaxy Z Fold 8 performed well. Budget phones struggled to turn a profit because of thin margins, prompting Samsung to shift focus to high‑value‑added products.

Consumers can expect higher smartphone prices across all categories, with the $200‑$500 segment likely seeing the largest percentage increases. Samsung’s advantage lies in its own memory and storage manufacturing, which helped its DS division thrive.

The DS division recorded a 56 percent sales rise, and the memory business hit an all‑time high. Samsung’s consolidated revenue reached 171.5 trillion won, with operating profit at an all‑time high of 89.5 trillion won, easing shareholder pressure.