Samsung Mobile Unit Reports Loss in Q3

Samsung has recorded its previously anticipated profit increase for the third quarter of 2026, continuing to capitalize on the robust demand for AI-optimized memory products. However, significant cost pressures continue to adversely affect the performance of its mobile devices division.

The Mobile eXperience and Networks business, encompassing smartphones and mobile network infrastructure, reported an operating loss of KRW 600 billion ($448.5 million), a sharp decline from the KRW 3.6 trillion profit achieved in the third quarter of 2025. Despite this, the division's revenue rose by 11% to KRW 37.7 trillion.

The unit noted that while its recent flagship and foldable product launches drove revenue growth, escalating cost pressures impacted the bottom line—a trend previously identified in the second quarter. Samsung intends to prioritize sales of premium handsets and related emerging products in the current period while striving to mitigate profitability risks through comprehensive efficiency enhancements across its business operations.

For 2027, the company plans to focus its mobile strategy on flagship devices and the delivery of differentiated experiences tailored to specific customer segments. It also aims to advance hardware and form-factor innovation. To minimize further profit erosion, Samsung will implement agile market responses and various operational efficiency initiatives.

Samsung’s Networks division recorded a decline in earnings, attributed to lower sales volumes in North America and a reduction in high-margin software revenue. The company is targeting renewed revenue growth across North America, Japan, and its domestic South Korean market during the current quarter.

At the group level, Samsung reported a net profit of KRW 75.1 trillion, up from KRW 12.2 trillion in the previous year. Total revenue reached KRW 195.3 trillion, representing a 127% increase. Management noted that these figures represent a quarterly record, driven primarily by the exceptional demand for memory products.

Samsung expressed optimism regarding its prospects, expecting industry-wide competition for AI leadership to sustain infrastructure investment in the current quarter. By 2027, the company anticipates that capital expenditure for AI infrastructure will reach historic levels.