Samsung mobile division faces inaugural loss as memory costs surge
Business
For the first time ever, Samsung's mobile division is facing a financial loss, and it all comes down to skyrocketing RAM and storage prices.
Thanks to the AI boom, the cost of memory chips has shot up, putting serious pressure on even big players like Samsung.
The company has already started cutting costs behind the scenes to deal with this new reality.
Budget Android phones become pricier
It is not just Samsung feeling the pinch: higher RAM and storage costs are making budget Android phones pricier across the board.
Brands like Motorola and Samsung have already bumped up their prices.
TM Roh, who is head of Samsung's mobile business, expressed concern about the possibility of an annual deficit for the MX business unit.