Samsung may record its first quarterly loss in the history of its smartphone sector, according to TechCrunch.

Despite Samsung Electronics’ expectations of achieving record profits during the second quarter of 2026 thanks to the strong performance of its semiconductor business, estimates indicate that the company's smartphone segment (Samsung MX) may record its first quarterly loss in history.

According to an analysis published by DealSite Korea, the segment’s results could range from profits of up to 1.9 trillion Korean won (about $1.38 billion) or losses of 1.5 trillion Korean won (around $1.09 billion). However, the most likely scenario is a loss ranging between $364 and $729 million.

Despite the strong performance of the Galaxy S26 series, analysts believe that the continuous increase in memory chip prices has significantly reduced Samsung’s profit margins.

It is worth noting that even during the Galaxy Note7 battery crisis, the mobile phone segment managed to achieve modest profits of around $73 million. This makes this potential loss a precedent in the history of the division.

Market data also shows that the cost of RAM memory in a phone priced at $800 has risen from 14% to 23% of the manufacturing cost, while the cost of NAND Flash memory now represents about 15% of the total cost of producing the phone.

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