Samsung Worried Phone Division May Post First-Ever Loss Due to Global RAM Crisis
What Is Happening to Samsung's Phone Division?
Samsung Electronics is now facing the risk of its first-ever operating loss for its mobile division (MX). TM Roh, head of Samsung's MX division, expressed concern about "the possibility of an annual deficit for the MX business unit" according to a 9to5Google report on April 22, 2026. A global RAM shortage, driven by surging AI chip demand, is the primary cause of this pressure.
Why Is This RAM Crisis Happening?
Demand for memory chips β including RAM and NAND storage β from the artificial intelligence industry has surged dramatically throughout 2025 and 2026. Data centers and AI companies are purchasing memory capacity in massive quantities to train and run AI models, causing supply for the smartphone industry to shrink significantly.
As a result, memory component costs for phone manufacturers have risen, squeezing profit margins especially for mid-range and budget devices that already operate on thin margins.
Which Brands Are Affected and How?
The impact of rising component costs is already being felt across the entire industry, not just Samsung.
Brand | Pricing Action | Category Affected |
|---|---|---|
Samsung | Raised Galaxy S26 prices compared to Galaxy S25 | Flagship |
Motorola | Increased Moto G series pricing | Budget phones |
Other Android OEMs | Price increases expected in coming quarters | All segments |
Low-cost Android phones are the hardest hit because their thin profit margins cannot absorb the rising component costs (according to industry analysis, April 2026). Flagship devices partly offset costs through premium AI features that justify higher prices.
What Does This Mean for Southeast Asian Markets?
Southeast Asian markets, including Malaysia, are likely to feel the impact in several ways. Retail prices for the latest Samsung phones already reflect rising component costs. This trend is expected to continue for new models launched throughout 2026.
For consumers planning to purchase a new phone, especially Samsung models, current prices may be lower than prices a few months from now if the RAM supply crisis continues.
What Steps Is Samsung Taking?
Samsung is implementing several strategic measures. Mauro Porcini, Samsung's President and Chief Design Officer, recently revealed the company's new design approach focusing on four categories (according to Android Authority, April 22, 2026):
- Live Longer β physical and mental health monitoring technology
- Live Better β time-saving innovations including AI assistants
- Live Loud β self-expression and content creation technology
- Live On β memory preservation through high-quality photography and video
This strategy shows Samsung attempting to shift from competing purely on specs and price to offering a more holistic user experience ecosystem.
Samsung RAM Crisis Timeline
Date | Event |
|---|---|
Mid-2025 | AI chip demand begins squeezing phone market RAM supply |
March 2026 | Internal Samsung cost-cutting reports emerge |
April 2026 | TM Roh acknowledges "possibility of annual deficit" for MX |
April 2026 | Samsung and Motorola raise latest device prices |
The situation remains developing. Consumers are advised to monitor price changes and make purchase decisions based on their individual budgets.
