The Galaxy S26 line recorded record sales in the first week of launch, with around 1.5 million units sold. Esse performance surpassed the pre-sales of the previous generation and consolidated the Ultra model as the most sought after, representing the largest share of orders. However, Samsung Electronics has placed its mobile devices division under emergency management due to increasing pressures on production costs.
Experts point out that the sharp increase in component prices, especially RAM and NAND memories, directly impacts profit margins. The demand for these inputs in the artificial intelligence sector has increased values by up to 850% in the last year, which affects smartphone manufacturers around the world. The South Korean company, although it produces part of the chips and screens internally, still depends on external suppliers for other essential elements.
Cost-cutting measures adopted by the company
The company implemented several actions to reduce internal expenses by up to 30% in the DX division, which covers cell phones, TVs and household appliances. Executivos began to travel in economy class on corporate flights, while voluntary retirement and internal employee relocation programs were put into practice. Essas initiatives aim to preserve financial health in a scenario of tight margins.
Furthermore, the company evaluates adjustments in daily operations to contain expenses without compromising product quality. The focus remains on maintaining leadership in the premium segment, where the Galaxy S26 stood out due to its initial sales volume.
Projections indicate a significant reduction in operating profit
Analysts estimate that the operating profit of Samsung’s mobile division could fall by about 60% in 2026, from 12.9 trillion won in 2025 to approximately 5 trillion won. In the first quarter of 2026, the projected margin is around 3%, which could reduce to 1% in the second quarter, a period without large launches.
The absence of new impact models in this range worsens the situation, especially with the continued rise in memory costs. Samsung has advantages such as its own production of semiconductors, but faces challenges similar to those of competitors who depend entirely on external suppliers.
Impact on the market for mid-range and affordable smartphones
The increase in component prices should mainly affect the line of intermediate and entry-level devices, categories where Samsung maintains a strong global presence. Projeções indicate a possible reduction of up to 15% in sales of these models throughout the year, which puts further pressure on the company’s overall profitability.
Despite this, the manufacturer continues to invest in advanced artificial intelligence features in devices, such as those present in the Galaxy S26 series. Essa strategy seeks to differentiate products and justify higher prices in a competitive market.
Dependence on supplies and prospects for the sector
Samsung supplies components to other brands, but the reduction in production by rivals may indirectly influence its own volumes. The global memory shortage scenario, driven by AI data centers, creates a challenging environment for the entire electronics supply chain.
Even with the initial success of the Galaxy S26 line, the company reinforces internal measures to navigate the period of financial pressure. The consolidated position as one of the largest cell phone manufacturers in the world offers some resilience, although the year requires continuous adjustments in operations and costs.
- 850% increase in RAM and NAND memory prices in the last year.
- Galaxy S26 Ultra represents around 70% of initial pre-sales.
- Projected 60% reduction in mobile division operating profit in 2026.
- Measures include relocating employees and 30% cuts in expenses.
Samsung maintains its commitment to innovation in its product portfolio, prioritizing efficiency and quality even in a context of high costs. The commercial performance of the new flagship line serves as a positive indicator of consumer demand for advanced technologies.
