Samsung's smartphone division reports its first-ever loss

Today, Samsung Electronics posted its final earnings report for Q2 2026. While the company saw record-breaking profits on the back of rising memory chip prices, its smartphone division reported a loss for the first time in its history. And things could get even worse in the coming months.

Samsung DX (Device eXperience), the division that oversees the company's smartphone and TV businesses, posted a loss of around KRW 800 billion (~$544 million) in the second quarter (Q2) of 2026. Of that amount, around KRW 700 billion (~$476 million) is attributed to Samsung MX, the division that sells smartphones, tablets, laptops, smartwatches, and other wearables.

Analysts say Samsung's mobile division could not post a profit despite efforts to limit the decline by selling more high-end products like the Galaxy S26 series and improving business efficiency. Extremely high memory chip prices increased manufacturing costs and put pressure on its margins.

Samsung's Visual Display (VD) and Digital Appliances (DA) divisions, which sell TVs, monitors, and home appliances, posted a combined loss of KRW 10 billion (~$6.8 million).

In contrast, Samsung's Harman division posted a profit of KRW 400 billion (~$272 million). Harman makes digital cockpit solutions for modern vehicles and sells audio products, including speakers, soundbars, earphones, and headphones, under brands such as AKG, Arcam, Bang & Olufsen Automotive, Harman Kardon, Infinity, JBL, and Mark Levinson.