Samsung’s mobile division may face its first-ever annual loss in 2026, as rising memory costs, intensifying competition, and mounting pressure across multiple product segments weigh on performance, according to a report by SammyGuru.
The report stated that mobile chief TM Roh warned internal leadership that the company’s MX (Mobile Experience) division could slip into losses this year.
This development is particularly concerning, as the MX unit has historically been a major source of profit for Samsung. The possibility of it turning unprofitable has reportedly raised alarms within the company’s management. If confirmed, this would mark the first annual loss for the division since it was established, signaling a significant departure from its past financial stability.
The situation also highlights broader challenges for Samsung’s long-term growth strategy, especially regarding how it plans to stabilize and strengthen its mobile business. Competition has been increasing across various categories, adding further pressure on the company.
In the foldable smartphone segment, where Samsung has long maintained a strong presence—particularly in the United States—its market share is now facing growing challenges. Meanwhile, Apple could further disrupt the segment if it chooses to enter the foldable device market.
Beyond smartphones, Samsung is also expected to face difficulties in the smartwatch sector, with reports suggesting its global market share could decline in 2026. Although the Galaxy S26 series is reportedly performing well in early sales, it remains uncertain whether this momentum alone will be enough to offset broader challenges and significantly improve the company’s overall financial results.
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