Samsung mobile division warns of possible first annual loss as RAM costs surge

Samsung co-CEO TM Roh has warned company leaders that the mobile division could report its first annual deficit this year, as rising RAM and storage costs continue to squeeze smartphone margins. The warning was reported by the Korean outlet Jukan. The smartphone market has been hit by a supply crisis as AI demand consumes much of the world's RAM output, driving component prices higher. Low-cost Android devices have been especially affected, with manufacturers describing price hikes as inevitable. Samsung's mobile division, known internally as MX, has historically always turned a profit. A report in March first revealed internal cuts and raised the possibility of an operating loss, but the new comments from Roh make the threat appear more certain. Previously, concerns came from speculation and outside parties. Several brands, including Motorola and Samsung itself, have already raised prices on some devices. The crisis highlights how the broader AI boom is creating ripple effects across consumer electronics supply chains, with component shortages affecting even the largest handset makers.