{"id":11319,"date":"2026-07-30T08:19:21","date_gmt":"2026-07-30T08:19:21","guid":{"rendered":"https:\/\/nile1.com\/en\/?p=11319"},"modified":"2026-07-30T08:19:29","modified_gmt":"2026-07-30T08:19:29","slug":"samsung-hits-record-62b-profit-on-ai-boom-as-mobile-unit-posts-first-deficit","status":"publish","type":"post","link":"https:\/\/nile1.com\/en\/2026\/07\/30\/samsung-hits-record-62b-profit-on-ai-boom-as-mobile-unit-posts-first-deficit\/","title":{"rendered":"Samsung Hits Record $62B Profit on AI Boom as Mobile Unit Posts First Deficit"},"content":{"rendered":"

An unprecedented surge in memory component costs driven by global artificial intelligence demand has created a striking financial divergence for Samsung Electronics<\/a>, pushing its mobile unit into the red even as the conglomerate posted record-breaking overall quarterly earnings.<\/p>\n

Driven by extraordinary demand for memory chips, Samsung recorded an all-time high quarterly consolidated revenue of 171.5 trillion won ($119 billion), representing a 28 percent year-over-year surge. Consolidated operating profit reached a record 89.5 trillion won ($62.2 billion), lifting earnings per share for common and preferred stocks by 52 percent. According to financial coverage by Reuters<\/a> on technology markets, chipmakers supplying high-performance memory have benefited from massive infrastructure spending by cloud and AI providers.<\/p>\n

However, that semiconductor boom exacted a heavy toll on Samsung’s Device Experience (DX) division, which encompasses its mobile, television, and consumer electronics units. The division logged its first-ever quarterly operating loss of 800 billion won ($544 million). The downturn was primarily concentrated in the Mobile eXperience (MX) sector, where rising component expenses eroded profit margins despite solid top-line revenue growth.<\/p>\n

The margin squeeze disproportionately affected lower-cost devices. While premium devices such as the Galaxy S26 Ultra<\/a> and Galaxy Z Fold 8<\/a> maintained profitability, budget models faced severe pressure. Popular entry-level hardware, including the Galaxy A series, typically operates on thin profit margins that were entirely consumed by elevated DRAM and storage component prices.<\/p>\n

Conversely, Samsung’s Device Solutions (DS) Division\u2014which produces the silicon components used across the tech industry\u2014reported a 56 percent quarter-on-quarter increase in revenue. Its Memory Business achieved record quarterly sales and operating profit, underscoring how Samsung’s semiconductor division effectively capitalized on the market dynamics squeezing its smartphone operations.<\/p>\n

To mitigate ongoing margin compression, Samsung plans to focus heavily on high-value-added products in future quarters. Industry analysts expect broader price increases across the smartphone market, with budget and mid-range devices in the $200 to $500 range likely to experience the most significant percentage price hikes.<\/p>\n

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