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Memory crunch sent Samsung’s Q2 smartphone business into first loss since 2011
Samsung Electronics’ MX (smartphone) business recorded an operating loss of 700 billion KRW in Q2 2026. This marks the division’s first quarterly deficit since performance tracking for the segment began in 2011.
According to the Q2 2026 earnings report released by Samsung Electronics on July 30, the MX (smartphone) business posted revenue of 33.2 trillion KRW and an operating loss of 700 billion KRW.
Revenue increased by 13.7 percent compared to the 29.2 trillion KRW recorded in Q2 2025. However, profit turned into a deficit, shifting from a 3.1 trillion KRW profit in the same period last year.
Compared to the previous quarter, revenue fell by 12.9 percent to 38.1 trillion KRW, and operating profit also turned from a 2.8 trillion KRW surplus into a loss.
Samsung explained that while demand for flagship products, such as the S26 series, remained solid and sales of the A series increased, profitability deteriorated due to rising component costs.
Samsung Electronics plans to expand its smartphone market share in the second half of the year by increasing the sales proportion of high-value products, including the Galaxy S26 Ultra and the Z8 series foldables.
The company also aims to defend profitability by enhancing cost competitiveness through the optimization of sales and operational resources.
Related article:
Samsung’s Q2 2026 profit jumps 19x on AI boom; Mobile Business meets loss
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Samsung unveils Galaxy Z Fold 8-powered BTS THE CITY experiences in the US
Samsung is teaming up with HYBE once again, this time to power the second leg of the North American run of the “Samsung Galaxy & BTS WORLD TOUR ‘ARIRANG’.”
Galaxy Z Fold 8 Ultra takes center stage
At the heart of the Samsung Galaxy & BTS WORLD TOUR ‘ARIRANG’ is the Galaxy Z Fold 8 Ultra. The company’s most advanced foldable phone is taking center stage to power the second leg of the North American run of the BTS concert.
Last week, Samsung launched the Galaxy Z Fold 8 Ultra alongside the Fold 8 and Flip 8 foldable phones. The device comes with a new 50MP ultrawide camera, a 5,000mAh silicon-carbon battery, and more Ultra innovations.
The phone is being positioned as the go-to companion for concertgoers wanting to hold on to their favorite live moments.
THE CITY is open to everyone
Anyone can join in through a stamp rally scattered across East Rutherford, or stop by the Samsung Galaxy Experience Booth at ARMY “MADANG” inside the Korean Cultural Center from August 1 through 3.
Concertgoers are encouraged to get to the stadium early to have the opportunity to learn how Photo Assist on the Galaxy Z Fold 8 can transport them into a music video inspired by BTS.
Experience attendees will have the exclusive opportunity to use the Interpreter feature to send a message to BTS, get a one-of-a-kind printed souvenir photo, and snap a cute mirror selfie featuring the BTS logo before they take their seats.
News
Samsung’s Q2 2026 profit jumps 19x on AI boom; Mobile Business meets loss
On July 30, Samsung officially announced its Q2 2026 earnings and profit, with the profit beating previous estimates riding on the AI boom.
The South Korean tech giant announced that DRAM and NAND sales remained at an all-time high in the second quarter. Strong memory chip sales helped Samsung flag record profit in Q2 2026, outclassing early estimations.
Samsung Q2 2026 revenue and profit
Samsung Electronics posted KRW 171.5 trillion in consolidated revenue, representing a quarter-on-quarter (QoQ) increase of 28%. Operating profit also reached another all-time high, increasing to KRW 89.5 trillion.
- Earnings (Revenue) – KRW 171.5 trillion
- Profit – KRW 89.5 trillion
It’s worth noting that the company’s second-quarter operating profit jumped 1,814% year on year, while revenue rose 130%. When compared quarter on quarter, profit climbed over 56%, while revenue climbed more than 28%.
While DRAM and NAND are selling at scale, Samsung also ramped the supply of HBM chips. Shipments of HBM4 are underway, with the company also shipping HBM4E samples to major customers.
Samsung’s MX Business flags negative profit
Samsung’s MX Business reported the first profit loss in years. The mobile division (including networks business) posted KRW 33.2 trillion in consolidated revenue and reported an operating loss of KRW 0.7 trillion for Q2 2026.
While revenue grew year-on-year (YoY) on solid sales of the Galaxy S26 series and strong Galaxy A series momentum, earnings declined due to elevated component cost pressures across the industry.
In H2 2026, Samsung sees robust yet stable demand for memory centered on servers and continuing AI infrastructure capex. Besides, the company expects to see a growth in demand for server DRAM, eSSDs, and HMB, accelerating.
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Samsung’s Galaxy Z Fold 8 lineup find instant momentum in India; 271,000 pre-orders within 72 hours
Galaxy Z Fold 8 lineup hits record 271,000 pre-orders in India within 72 hours, becoming Samsung’s fastest pre-ordered foldable phones.
Samsung unveiled the three foldable phones, including the Galaxy Z Flip 8, Galaxy Z Fold 8, and Galaxy Z Fold 8 Ultra, on July 22, 2026. Pre-orders are live, and general sales are set to begin on August 7, 2026.
It’s worth noting that the newest foldable found instant momentum in India. In comparison, the Galaxy Z Flip 7 and Galaxy Z Fold 7 took around two weeks to hit this figure.
One thing to note is that Samsung’s foldables are selling at scale even though people know that Apple is also bringing its first foldable product, the iPhone Ultra, later this year.
Despite a price increase, Samsung’s foldables are selling well in India. Record pre-orders are coming from Tier-2 cities, handing the Korean tech giant a morale boost to further evolve the segment.
JB Park, president and CEO of Samsung Southwest Asia, said: “The overwhelming response to our new Galaxy Z series highlights India’s increasing demand for innovative technologies that enhance productivity and unlock creative potential. These devices, offering personalised Galaxy AI experiences, are not only Made in India but also supported by our robust Indian R&D capabilities tailored to meet the dynamic needs of Indian consumers. With 45% of pre-orders originating from Tier 2 cities and beyond, we are observing the rise of a promising growth market with significant potential.”
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Samsung ends a US case that targeted a key Galaxy camera feature
Samsung has closed the book on a smartphone camera patent case that dragged on for roughly a year and seven months in the US.
According to the US District Court for the Eastern District of Texas, Samsung and Optics Innovation, a US-based non-practicing entity, submitted a joint request asking the court to permanently dismiss all claims.
Samsung resolves camera feature case in the US
Back in 2024, Optics accused Samsung of infringing on two of its patents, numbered 10,687,708 and 10,623,705. The patents are linked to the technologies that work behind Galaxy Camera’s Portrait Mode and Live Focus features.
Samsung and Optics held behind-the-scenes talks, and the former may have agreed to settle outside the courtroom. It was a smart play when you are not fully likely to win the patent case, and the brand’s credibility can’t be put at risk.
Optics has agreed to withdraw its claims against Samsung, and it will not file another lawsuit over the same subject matter going forward. The financial details, including any royalty or settlement amount, were kept under wraps.
Things moved quickly once March arrived, with both sides confirming they had reached an agreement in principle covering every disputed issue.
The case never made it to a jury trial; this week’s dismissal motion is simply the formal paperwork needed to close things out. Well, the court still needs to review and approve the request before the case is officially wrapped up for good.
Since it’s an agreement, the US court will likely allow Samsung and Optics Innovation to settle the patent lawsuit. It will require the latter firm to withdraw the patent case registered, which it already agreed to withdraw.
News
Samsung partners with Snapchat for new foldable phones
Samsung India is teaming up with Snapchat for a fresh push to get its latest Galaxy foldable phones in front of younger buyers. The two companies have kicked off a creator-led campaign that leans on 60 Gen Z Snap Stars from across the country.
The activation started on July 22 and is being executed in two parts.
The first phase brought 20 creators (via Viral Vault India) to the official launch event, where they shared behind-the-scenes clips, live updates, and their first impressions of the new devices as things unfolded.
The second phase will bring in another 40 creators from different parts of India. This should help the campaign travel well beyond the usual metro-heavy marketing push and actually reach smaller cities and towns too.
According to Neha Jolly Sawhney, who heads ad revenue at Snapchat India, Gen Z simply discovers products differently than older generations did, and they tend to trust creators far more when the content feels genuine rather than scripted.
The idea is to let these creators tell their own stories with the Galaxy foldables, connecting with communities in a way that doesn’t feel like a straightforward ad.
All this campaign content is being pushed out through Snapchat Spotlight, Snap Map, and the individual profiles of the participating creators, meeting Gen Z users on formats they already engage with daily.
On July 22, Samsung launched three new foldable phones. The Galaxy Z Flip 8 starts at $1,099, the Galaxy Z Fold 8 at $1,899, and the Galaxy Z Fold 8 Ultra at $2,000. Preorders are live and official sales are set to begin on August 7.
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