Podcast Episode
The results mark a dramatic turnaround from a year earlier, when Samsung posted just six point five trillion won in operating profit. Revenue also hit an all-time high of ninety-four trillion won as data centre operators scrambled to secure chips for AI training and inference workloads.
The problem is an unusual one: Samsung's memory success is partly causing its smartphone struggles. As memory prices climbÔÇödriven by tight supply and AI-related demandÔÇöthe cost of components for Samsung's own phones rises too. DRAM prices are projected to jump forty to fifty percent in early twenty twenty-six, squeezing margins across the device industry.
However, industry analysts at Counterpoint Research forecast global smartphone shipments will decline around two percent in twenty twenty-six as rising memory costs work their way through the supply chain. Samsung executives have acknowledged the challenge, telling investors the company will focus on supply stability and tighter cost control to protect profitability.
Samsung Profits Triple as AI Chip Boom Squeezes Smartphone Margins
January 29, 2026
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Samsung Electronics posted record quarterly profits of twenty trillion won as AI-driven demand for memory chips sent prices soaring. However, the same memory shortage boosting chip earnings is now raising costs for Samsung's smartphone division, creating an unusual internal squeeze.
Record Profits Powered by AI Memory Demand
Samsung Electronics has reported its highest-ever quarterly earnings, with operating profit more than tripling to twenty trillion won (roughly fourteen billion dollars) in the final quarter of twenty twenty-five. The surge was driven almost entirely by explosive demand for memory chips used in artificial intelligence infrastructure, particularly high-bandwidth memory destined for AI servers.The results mark a dramatic turnaround from a year earlier, when Samsung posted just six point five trillion won in operating profit. Revenue also hit an all-time high of ninety-four trillion won as data centre operators scrambled to secure chips for AI training and inference workloads.
The Internal Squeeze
While the memory division celebrated record results, Samsung's mobile business faced a more challenging picture. The Mobile eXperience division recorded operating profit of one point nine trillion won in the quarter, down from the previous year despite strong flagship sales.The problem is an unusual one: Samsung's memory success is partly causing its smartphone struggles. As memory prices climbÔÇödriven by tight supply and AI-related demandÔÇöthe cost of components for Samsung's own phones rises too. DRAM prices are projected to jump forty to fifty percent in early twenty twenty-six, squeezing margins across the device industry.
Smartphone Outlook
Despite the cost pressures, Samsung projects higher smartphone shipments and average selling prices in the first quarter compared with late twenty twenty-five. The company plans to lean on flagship launches, including the upcoming Galaxy S26 series, and on-device AI features to justify premium pricing.However, industry analysts at Counterpoint Research forecast global smartphone shipments will decline around two percent in twenty twenty-six as rising memory costs work their way through the supply chain. Samsung executives have acknowledged the challenge, telling investors the company will focus on supply stability and tighter cost control to protect profitability.
Published January 29, 2026 at 8:31am
