Samsung’s smartphone division could barely make 1% of its Semiconductor business profits in Q2 2026. And that’s if the forecast that Samsung has put out is accurate. That’s quite surprising, given the fact that Samsung sells more phones than virtually any other OEM (depending on the time of the year, more than Apple even). But it all comes down to Samsung’s odd business practices.
As Ice Universe points out in his X post, they do both “belong to the same Samsung system, but one side controls some of the world’s most important resources in chips, memory, and displays, while the other is becoming increasingly passive in the smartphone market.”
You would think that both would empower each other, but in reality, they operate as totally separate companies and act like they have nothing to do with each other. LG also operates like this; they no longer have a smartphone division.
Ice also mentions that “it owns one of ht estrongest supply chain ecosystems in the world, yet it struggles to fully integrate those advantages into Galaxy smartphones.” As you likely know, if you follow Samsung at all, its Semiconductor division is raking in huge profits, while the mobile business is struggling.
It’s almost like these divisions can’t make decisions
Last week, we reported on how each division is not able to make its own decisions on products and other aspects of the division. As these are all made by the Future Strategy Office in Seocho. It’s not a great idea to have a finance department making product decisions, as they’re just worried about the money, instead of customers and keeping up with the competition.
This really shows just how strange a company Samsung truly is. One division is struggling, which should really be propped up by the one hitting huge profit margins.
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