Samsung Electronics Gains From Memory Chip Prices, Smartphone Outlook
Samsung Electronics will fare better than most smartphone makers this year, Mizuho Securities reported. Rising memory chip prices support its semiconductor division, while a flagship phone focus helps absorb higher costs.
Memory Prices Drive Samsung's Edge
Samsung Electronics is set to outperform most smartphone manufacturers, Mizuho Securities shows. The Japanese brokerage forecasts global smartphone shipments will reach 1.15 billion units in 2026, down 9 per cent from 2025. Samsung's own shipments are projected to remain broadly flat at 240 million units.
Major Chinese vendors, with higher exposure to lower-priced phones, face steeper declines. Samsung and Apple are better placed to secure memory supplies, relying more on premium devices. This allows both companies to absorb higher component costs or pass them to customers through pricing.
Semiconductor Division Bolsters Earnings
The Device Solutions division, which includes Samsung's memory business, posted 89.2 trillion won ($66.4 billion) in operating profit for the second quarter of 2026. Higher chip prices and strong demand for AI servers drove this performance. Counterpoint Research reported in July that global smartphone shipments fell 11 per cent year on year in Q2 2026.
This occurred as shortages of DRAM (Dynamic Random-Access Memory) and NAND (Not-AND) flash memory worsened. Samsung’s shipment share, however, rose to 24 per cent from 20 per cent a year earlier, while Xiaomi, Oppo, and Vivo experienced double-digit declines.
Flagship Strategy Mitigates Mobile Losses
Pressure on smartphone sales has been strongest in entry-level and midrange models. Memory components account for a larger share of the bill of materials (BoM) for these devices. Samsung's Mobile eXperience and Networks businesses recorded a 700 billion won operating loss in Q2 2026. The company cited elevated industry-wide component costs.
Samsung stated it will focus its second-half 2026 smartphone sales on flagship products, including the Galaxy Z8 and S26 series. This strategy aims to increase the share of premium devices in its sales mix.
Foldables Present Future Opportunity
Apple’s entry into foldable smartphones could provide a new business source for Samsung Display, Samsung's display-making affiliate. Mizuho lowered its estimate for Apple’s first foldable handset production this year to 4.1 million units from 5.8 million, citing hinge-related delays.
Despite this slower ramp-up, the brokerage expects Samsung Display to supply 8 million to 8.5 million foldable panels during 2026. This demonstrates Samsung's diverse revenue streams, mitigating overall market softness and component cost pressures for its mobile division.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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