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Despite record Galaxy S26 pre-orders, Samsung’s mobile unit is literally in emergency mode

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Why This Matters

Despite record-breaking pre-orders for the Galaxy S26, Samsung's mobile division is facing financial strain due to skyrocketing component and logistics costs, prompting emergency management measures. This highlights the ongoing supply chain and cost challenges in the tech industry, which could impact product profitability and pricing strategies for consumers and manufacturers alike.

Key Takeaways

Hadlee Simons / Android Authority

TL;DR Samsung Electronics is reportedly in ’emergency management’ due to rising prices and the possibility of a deficit.

Samsung is taking drastic measures as a result, including economy-class airfare for most executives.

This news comes despite the Galaxy S26 series apparently breaking pre-order records.

The smartphone industry is facing a RAM crisis as memory prices skyrocket, while other components are also seeing price hikes. Now, it turns out that mobile juggernaut Samsung is taking radical measures.

FNN News reports (h/t: Jukan05 on Twitter) that Samsung Electronics has entered “emergency management” due to rising semiconductor and logistics prices. The AI sector’s demand for RAM has led to unprecedented price increases, while components like displays and chipsets have seen price hikes too. It also comes amid the US-Israeli war in Iran, which has seen rising oil prices as a result.

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This activation of emergency management comes despite Samsung boasting of record pre-orders for the Galaxy S26 series. In fact, the company said pre-orders saw a double-digit increase over the Galaxy S25 series.

“With cost pressures severe due to rising semiconductor prices and the increasing burden of logistics costs, the MX business unit has ultimately been forced to enter an emergency management system,” a Samsung official told the outlet.

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