Samsung smartphone division expected to report first-ever loss in its history

The second quarter of the current year may end with unexpected financial results for the South Korean tech giant Samsung. According to a new report by Meritz Securities analysts, the Samsung MX division, responsible for smartphone production, is projected to close the quarter with a loss for the first time in its history. This was reported by Ixbt.com reports .

According to analytical data, the MX division incurred an operating loss of approximately 1 trillion won (about $740 million) in the second quarter. This is an unprecedented situation for Samsung since the smartphone market was established. Typically, the company's mobile device segment has been one of the main drivers of total revenue.

Reasons for the crisis and the situation in other divisions

According to ixbt.com, not only the smartphone division but also departments producing network equipment and home appliances are expected to report losses this quarter. The global economic situation, rising component costs, and shifting consumer demand may be the reasons for these negative figures.

Although the Samsung brand holds a leading position in the Uzbekistan market, intensifying global competition and rising marketing costs are putting pressure on the company's profits. Maintaining a balance between flagship models and mid-range devices is becoming increasingly difficult.

Semiconductor business as a savior

Although the mobile division is suffering losses, Samsung Corporation is expected to generate a massive overall profit. This is due to the company's huge success in the semiconductor (chip) manufacturing business. Analysts estimate the operating profit in this sector to be around 112 trillion won.

Thus, thanks to its diversified business model, Samsung will manage to offset the temporary failure in the smartphone market through chip sales. This once again proves how stable the company is within the technological ecosystem.

So far, Samsung has not officially commented on these analyses. Once the company's final quarterly report is released, more accurate conclusions can be drawn about the actual state and future strategy of the mobile division. Experts hope that sales of new foldable phones in the second half of the year will improve the situation.