March 18, 2026, 2:13 pm | Read time: 2 minutes
Samsung is currently under economic pressure, even though some business sectors continue to perform well. The production of chips, in particular, brings in significant revenue for the company. However, other divisions are increasingly facing difficulties. The mobile division is especially affected. While current devices like the Galaxy series are selling well, production costs are rising significantly.
A central reason for this is the increased prices for memory chips. Although Samsung produces these itself, it has to purchase them internally at higher prices, which noticeably reduces profit margins. According to the Korean online portal “Financial News,” it is even possible that this area could incur losses.
Emergency Measures Aim to Significantly Reduce Costs
The situation is reportedly considered serious internally. As early as the end of February, Samsung declared a state of emergency for several business areas. The goal is to quickly and significantly reduce expenses. This affects not only smartphones but also televisions and household appliances.
Also of interest: Samsung Confirms Display Downgrade in S26 Ultra
Various measures are to be implemented in the affected areas. These include reduced budgets, restrictions on business travel, and changes in personnel policies. For example, executives are to fly economy class on shorter routes. Overall, Samsung plans to cut costs by about 30 percent.
Potential Impact on Consumers
These developments could have noticeable effects on consumers. When production costs rise, companies often pass on at least part of these costs. As a result, devices could become more expensive in the future.
At the same time, there is increasing pressure to save in other areas. This could also affect the development of new products if less money is available for research and innovation. Additionally, logistics costs are rising, partly due to higher energy prices. In the end, this could mean that costs increase without new devices offering significantly greater advancements.