The Galaxy Z Fold 8 has been a resounding success for Samsung. So successful that Samsung not only had to increase production for this model, but also decided to launch a second, even wider Fold next year for the Galaxy Z Fold 9 series.
But that didn’t keep Samsung’s mobile business out of the red, as was forecasted. According to a report from Maekyung ECONOMY, despite strong demand for the Galaxy Z Fold 8 and home appliances, Samsung’s Mobile eXperience (MX), Visual Display, and Digital Appliances divisions could post operating losses through the third and fourth quarters of the year.
Yes, you know exactly why these divisions will post losses: the DRAM crisis. Samsung is still benefiting from this, as it is one of three companies that own 90% of the DRAM market. DRAM has surged about 3x compared to last year’s average, which is forcing Samsung and others to raise prices on virtually everything.
Meanwhile, Samsung’s LSI division, which sells processors, DRAM, and NAND storage, is posting incredible profits. In fact, they just posted a Q2 profit that surpassed their profits over the last 40 years combined. That shows just how incredible the DRAM price increases have been this year. This is expected to continue for the next few years too.
Galaxy Z Fold 8 pre-orders were 30% higher than Galaxy Z Fold 7
According to data from Counterpoint Research, the Galaxy Z Fold 8 series saw 30% higher pre-orders globally, versus the Galaxy Z Fold 7. The research also shows that people in their teens, 20s, and 30s, in particular, who have refrained from buying Samsung phones have reportedly purchased the new Galaxy Z Fold 8 and/or Galaxy Z Fold 8 Ultra. That’s a massive win for Samsung.
Meanwhile, on the appliances side, that division did receive a boost from a 20% gift certificate refund promotion in South Korea, helping reclaim the top spot from Chinese competitors in the robot vacuum space.
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