Samsung Electronics expects record-breaking profits for Q2 2026 driven by semiconductors, but its mobile division Samsung MX might post its first-ever quarterly loss. According to Deal Site South Korea analysis, Samsung MX earnings could range between KRW 1.9 trillion ($1.38 billion) profit and KRW 1.5 trillion ($1.09 billion) loss, with the most probable scenario a loss of $364-729 million.

This comes despite strong Galaxy S26 series performance. Analysts attribute the downturn to rising memory chip prices eroding margins. Even during the Note7 battery crisis, the mobile arm reported a modest $73 million profit.

Market data shows RAM chip cost for an $800 phone has jumped from 14% to 23%, while NAND flash storage now accounts for 15% of production cost, squeezing profitability despite flagship sales strength.