Samsung Mobile Division Established Emergency Management System
Samsung Electronics activated emergency management for its Mobile Experience division at the beginning of 2026. The company had already established similar emergency protocols for its television and home appliance departments before this action. The Galaxy S26 series achieved record preorder sales but the company struggles with profitability because of escalating semiconductor costs and increased international shipping expenses.
The emergency situation emerged because memory semiconductor prices experienced their highest ever price increase. The Device Experience division faced severe budget constraints because memory prices increased more than 850% during the last year. The organization spent approximately 100 trillion won on raw materials last year which represents an 8.8% rise over previous periods according to internal records.
The costs for Exynos 2600 and vital mobile components have increased beyond the revenue growth which resulted from strong product sales. The ongoing Middle Eastern conflict has caused oil prices to rise which in turn has increased shipping costs for delivering Galaxy products worldwide.
The MX business unit will experience a severe financial downturn during the current fiscal year according to projection
- The operating profit will decrease to about 5 trillion won which represents a more than 60% drop from the previous year's 12.9 trillion won.
- The operating margins will fall from 11% to between 3% and 1% during the first quarter according to estimates while internal warnings predict a decline to 1% in the following quarters.
- The company sees its deficit risk at 3 situations which the company considers as its most probable outcomes.
