Samsung Not Too Optimistic in Its Handset Guidance

Samsung has warned that the supply constraints and rising memory prices could result in changes to its guidance. The unit forecast that the smartphone market will experience modest revenue growth in 2026, and shipment volumes will remain flat.

Mobile eXperience EVP Cho Seong said during an earnings call that 2026 is expected to be a challenging year due to the rising cost pressure across the industry. Cho explained that heightened volatility in the industry conditions, including fluctuation in the memory market, means that forecasts may be subject to further adjustment. Tablet replacement demand is slowing, he said. The company teased plans to launch a more affordable foldable handset in the second half to drive growth.

Cho said steady growth in sales and shipments of flagship smartphones and the Galaxy A Series enabled them to deliver double-digit profitability in 2025. Revenue from the MX and Networks unit increased 13% year-on-year to KRW29.3 trillion ($20.5 billion) in 4Q25, and operating profit fell 2% to KRW1.9 trillion. Smartphone shipments grew 15.4% to 60 million units, and tablet shipments fell 16.6% to 6 million. Its smartphone average sale price declined 6.6% to $244.

The entire Samsung Group's net profit more than doubled to KRW19.3 trillion, driven by the operating profit of the Device Solutions division increasing from KRW2.9 trillion in 4Q24 to KRW16.4 trillion. The unit covers all types of chips. Total revenue grew 24% to KRW93.8 trillion, with memory sales up 62% to KRW37.1 trillion.

Kim Jaejune, EVP for Samsung's memory unit, said that HBM4 entered the final phase of qualification and started full-scale production, confirming that shipments would start in February. “Everything is proceeding smoothly. We have received positive customer feedback on the performance of HBM4.” Regarding its 2026 HBM sales outlook, Kim added that all production capacity is currently fully booked with customers.