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Samsung Could Lose Money On Smartphones For the First Time

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Why This Matters

Samsung's mobile division faces a potential first-ever loss in 2026 due to rising costs and increased competition, signaling a challenging period for the company's flagship business. This development could impact consumer confidence and influence the broader smartphone and wearable markets. It also highlights the need for innovation and strategic adjustments within the industry to maintain growth.

Key Takeaways

A report says Samsung's mobile division could post its first-ever annual loss in 2026, as rising memory costs, tougher competition, and pressure across products like foldables and smartwatches weigh on the business. SammyGuru reports: Samsung boss TM Roh reportedly told company leaders that the mobile (MX) business could lose money this year. That warning has clearly rattled management. The MX unit has long been a key pillar for Samsung. That's why the idea of it slipping into the red is a serious concern for the company's overall performance. If this prediction holds, it would mark the first time the MX business reports a yearly loss since its inception. That's a sharp turn from its track record so far. It also raises bigger questions about future growth, rising competition, and how Samsung plans to steady the ship in its mobile division. And it's not like the challenges are easing up. Samsung's foldable market share in the US, where it currently enjoys a dominant position, doesn't look as solid as before, and Apple could shake things up if it enters the segment. On top of that, market reports suggest Samsung's overall smartwatch share could dip in 2026. The Galaxy S26 series seems to be selling well for now, but whether that's enough to move the needle is still up in the air.

Read more of this story at Slashdot.