Memory Boom Was a Double-Edged Sword for Samsung’s Results

Even though Samsung posted excellent overall business results in the past quarter, memory prices had different effects on profitability across company segments. The mobile division booked an operating loss in Q2 due to elevated component costs, as the unit covering memory production had triple-digit growth in revenue and net earnings.

Samsung's Mobile eXperience (MX) division and associated Networks Business recorded an operating loss of KRW700 billion ($480 million) compared with a profit of KRW2.8 trillion in 2Q25. Revenue was up 14% to KRW33.2 trillion. Samsung noted that despite solid sales of its flagship Galaxy S26 devices and strong momentum for its lower-end Galaxy A series, earnings declined due to elevated component cost pressures across the industry.

The company said it plans to continue its focus on providing AI experiences on its devices and drive overall market share growth based on flagship-first expansion centred on the new Galaxy Z8 and S26 series. It also flagged plans to launch smart eyewear and pursue efficiency initiatives to mitigate the impact of rising costs. For networks, it pointed to improved earnings supported by increased sales outside of its home market of South Korea.

While the company suffered from rising component costs for its devices, Samsung’s memory chip business recorded what it described as an all-time high in quarterly revenue and operating profit. The Device Solutions division, which houses the memory unit, booked an 89% increase in operating profit to KRW89.2 trillion on revenue up 357% to KRW127.5 trillion. Across the whole of Samsung Electronics, revenue was up 130% to KRW171.5 trillion, and net profit grew from KRW5.1 trillion to KRW71.6 trillion.