Samsung is losing money on the Galaxy S26, but Galaxy S27 'differentiation' could turn the tide
For the second quarter in a row, Samsung's mobile division is in the red, and this time, both the Galaxy S26 family and the Galaxy Z Fold 8 duo were around.
With both the S26 trio and the Galaxy Z Fold 8 duo on the market, you may have expected things to go back to "normal" for the world's number one smartphone vendor during the year's third quarter, but surprisingly or not, that hasn't happened... yet.
Samsung's second consecutive mobile loss is... not that big
While there's obviously no universe in which losing money in a business as ruthless as handset manufacturing can be seen as a positive, at least Samsung's MX (Mobile eXperience) and Networks department isn't in the red by that much.
The Galaxy Z Fold 8 might be one of the reasons why Samsung isn't losing that much money on phones yet. | Image by PhoneArena
We're talking a Q3 2026 operating loss of KRW 0.6 trillion ($448 million) on KRW 37.7 trillion ($28.1 billion) in consolidated revenue, which comes after a first-ever quarterly loss of KRW 0.7 trillion on KRW 33.2 trillion revenues in Q2 2026.
Of course, the big problem here is that Samsung's mobile division used to generate very solid profits not that long ago, finishing last year's third quarter, for instance, with a net gain of 3.6 trillion Korean won that would currently equate to almost $2.7 billion.
Should Samsung change anything about its mobile portfolio?
2 Votes
At the same time, those types of recent gains should give the company the tranquility to wait out what's clearly a tough period for the entire mobile industry, as well as the confidence that the Galaxy handset family will likely turn things around relatively soon without there being need for radical changes, rash cost-cutting measures, or product retirements.
Some things will definitely be tweaked
And the first one is likely to be the prices of the Galaxy S26 roster, as well as the Galaxy Z Fold 8 and Z Fold 8 Ultra, this holiday season. I'm obviously not expecting any permanent price cuts in the near future, but Samsung is probably planning some unusually aggressive temporary discounts for its most popular phones around Black Friday and Cyber Monday to try to drive "year-end peak-season sales growth."
Recommended For You
Samsung seems to have very high expectations from the Galaxy S27 Pro. | Image by Android Headlines
Perhaps even more interestingly, the company aims to "improve its product mix" in 2027, focusing more on flagships with "differentiated experiences by customer segment." While no names of future products are mentioned anywhere in Samsung's latest press release, I believe this "differentiation" could be related to the rumored addition of a fourth model to the Galaxy S27 lineup.
Samsung is evidently counting on that Galaxy S27 Pro version, as well as the base S27, the S27 Plus, and the S27 Ultra, to build on the undeniable success of the S26 family and take profits to new heights. Of course, that's not the only thing the company is looking to change, with "hardware and form-factor innovation" also in the pipeline. Could that be an indirect confirmation of the impending arrival of a rollable or slidable device of some sort? It's definitely possible.
Other Samsung businesses are booming
Specifically, one other division, and there are no prizes for guessing which one. Yes, Samsung's DS (Device Solutions) department, which includes memory chips among others, is basically single-handedly responsible for the tech giant's monumental KRW 107.4 trillion ($80.3 billion) overall profit score posted at the end of Q3 2026.
Memory chips are clearly Samsung's bread and butter right now. | Image by Samsung
That's not a figure of speech, mind you, as the DS division somehow generated a profit of KRW 106.5 trillion ($79.6 billion) between July and September of this year, improving on an already mind-blowing Q2 2026 gain of KRW 89.2 trillion and a far humbler profit score of "just" 7 trillion won this time last year.
Unsurprisingly, that means records were broken... once again by Samsung's Memory Business thanks to an increased focus on AI products, and of course, higher prices "across all applications." Basically, the industry-wide "chipflation" giveth and it taketh away from a behemoth like Samsung, ultimately helping the company offset its tiny smartphone loss with huge component gains.
Here are more news stories on upcoming Samsung products that might interest you:
Get a free Galaxy A17 with Straight Talk. To claim this deal, you need to pair the phone with activation on a Silver Unlimited Plan or higher. This tier costs $45 per month. Offer valid through 01/10/27 while supplies last online.
Adrian, a mobile technology enthusiast since the Nokia 3310 era, has been a dynamic presence in the tech journalism field, contributing to Android Authority, Digital Trends, and Pocketnow before joining PhoneArena in 2018. His expertise spans across various platforms, with a particular fondness for the diversity of the Android ecosystem. Despite the challenges of balancing full-time parenthood with his work, Adrian's passion for tech trends, running, and movies keeps him energized. His commitment to mid-range smartphones has led to an eclectic collection of devices, saved from personal bankruptcy by his preference for 'adequate' over 'overpriced'.
A discussion is a place, where people can voice their opinion, no matter if it
is positive, neutral or negative. However, when posting, one must stay true to the topic, and not just share some
random thoughts, which are not directly related to the matter.
Things that are NOT allowed:
Off-topic talk - you must stick to the subject of discussion
Offensive, hate speech - if you want to say something, say it politely
Spam/Advertisements - these posts are deleted
Multiple accounts - one person can have only one account
Impersonations and offensive nicknames - these accounts get banned
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts:
New accounts created within the last 24 hours may experience restrictions on how frequently they can
post or comment.
These limits are in place as a precaution and will automatically lift.
Moderation is done by humans. We try to be as objective as possible and moderate with zero bias. If you think a
post should be moderated - please, report it.
Have a question about the rules or why you have been moderated/limited/banned? Please,
contact us.
Things that are NOT allowed:
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts: