Samsung’s Phone Business Faces Risk of Historic First Ever Loss

Samsung’s mobile division could record its first-ever annual loss in 2026 as rising memory costs, stronger competition, and pressure across product categories weigh on the business, according to a report from SammyGuru.

The report said Samsung mobile chief TM Roh told company leaders that the MX business could lose money this year.

The MX division has long been one of Samsung’s core profit drivers.

According to the report, the possibility of the unit moving into a loss position has created concern within management.

If the forecast proves accurate, it would be the first yearly loss for the MX business since its creation.

That would mark a sharp shift from the division’s previous performance.

The report said the development also raises broader questions about Samsung’s future growth strategy and how it plans to stabilize its mobile business.

Samsung is also facing increasing competition in several categories.

Its foldable smartphone share in the US, where it has held a leading position, is reportedly facing more pressure than before.

Apple could also disrupt the foldable segment if it decides to enter the market.

Market reports cited in the article suggest Samsung’s global smartwatch market share could decline in 2026.

The Galaxy S26 series is reportedly selling well so far.

However, the report added that it remains unclear whether strong Galaxy S26 demand alone would be enough to significantly improve overall results.