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Samsung Warns Phone Unit Could Log First Annual Loss as AI Drives Up Memory Costs

Samsung’s chip arm is thriving on the same price surge now threatening its phone profits.

Overview

  • Samsung’s mobile chief TM Roh warned management Wednesday, via Korean media reports, that the MX phone business could post a full‑year loss for the first time.
  • AI data centers are buying low‑power DRAM (LPDDR5/5X) for servers, which has driven memory prices to nearly double in early 2026 according to Korean reports.
  • To feed AI customers, Samsung is winding down LPDDR4/4X and shifting capacity to LPDDR5/5X, tightening supply of cheaper memory that phones have relied on.
  • Samsung has started passing on some of the cost, lifting prices by $50 on the Galaxy A37 and A57 and by $80 on higher‑storage Z Flip 7 and Z Fold 7 models.
  • The semiconductor division booked a record Q1 profit, while analysts estimate premium‑phone parts will cost $100–$150 more and project DRAM supply could lag demand by 40% in 2027.