Samsung may face first smartphone loss in 2026 due to AI-driven memory costs
Samsung's mobile division is bracing for a potential first-ever net loss on smartphones in 2026, according to a Money Today report. MX head TM Roh warned leadership that skyrocketing DRAM and NAND prices—driven by AI infrastructure demand—could erase profits despite strong Galaxy S26 sales. The LPDDR5x memory used in phones is increasingly critical for AI servers; Nvidia's upcoming Vera CPU will support up to 1.5 TB per chip, and a single rack-scale platform with 36 Vera CPUs and 72 Rubin GPUs will consume enough RAM for 4,600 Galaxy S26 Ultra devices. This shortage has affected all computing hardware, from laptops to servers. Samsung has historically remained profitable on smartphones even during economic downturns and pandemic supply chain disruptions.
Key facts
- Samsung MX head TM Roh warned of a potential first net loss on smartphones in company history.
- The loss is attributed to skyrocketing DRAM and NAND prices due to AI capacity race.
- Samsung has never lost money on smartphones before, even during economic strife or pandemic.
- Galaxy S26 sales are strong but insufficient to offset memory cost increases.
- LPDDR5x memory in mobile devices is increasingly important for AI servers.
- Nvidia's Vera AI CPU will have up to 1.5 TB of LPDDR5x memory.
- A single Nvidia rack-scale AI platform uses 36 Vera CPUs and 72 Rubin GPUs.
- That platform consumes enough RAM for 4,600 Galaxy S26 Ultra devices (12GB each).
Entities
Institutions
- Samsung
- Samsung MX
- Money Today
- Nvidia