Samsung's mobile division may face its first-ever annual loss in 2026 due to soaring memory costs driven by AI demand, despite strong Galaxy S26 sales. Rising DRAM and NAND prices, critical for AI hardware, have doubled memory/storage expenses in smartphones. This shifts cost structures where RAM now exceeds processors as the most expensive component in budget devices.
Background
Smartphone manufacturing has traditionally been profitable for major players like Samsung, with processors and displays being the primary cost drivers. The AI boom is now disrupting this model by creating unprecedented demand for high-performance memory components.
- Source
- Ars Technica
- Published
- Apr 25, 2026 at 12:58 AM
- Score
- 7.0 / 10