Samsung’s Mobile Business May Face Tough Year Despite Galaxy S26 Demand

Samsung’s Mobile division (MX) has historically been a profitable business, and it has long been the world’s largest phone maker. But reports that Apple would take the crown from Samsung seem to be hurting the business. It has left Samsung expected to post its first ever operating loss, according to a report from Korean outlet HankYung (via Jukan!).

Samsung may make executives fly economy as mobile division expected to face losses

The report says the company is considering various cost-cutting measures to cope with the losses. Some measures are quite drastic. Key executives are reportedly being downgraded from business class travel and made to fly economy instead to reduce expenses. Moreover, there is discussion that Samsung’s DX division might loosen its voluntary retirement program.

According to the report, forecasts suggest Samsung could post its first ever operating loss. In simple terms, that means Samsung may have spent more money on operations than it earned. The situation is reportedly so serious that Samsung MX hasn’t seen conditions this weak since its founding.

There are challenges on multiple fronts. The ongoing RAM crisis is one factor, and pressure from rivals is another. In one case, forecasts say Apple could overtake Samsung as the world’s biggest phone maker. Another market research report claims that Motorola has already surpassed Samsung as the biggest foldable brand in the US.

Things don’t look entirely bleak, though, since the Galaxy S26 series appears to be selling better than the Galaxy S25 series. Preorders are reportedly up by as much as 25%, though that figure includes all sales channels. Samsung hasn’t officially announced anything yet, and it remains to be seen whether the company will actually post its first ever operating loss. For now, these remain rumors.