Samsung Electronics, a leading smartphone manufacturer, is facing the possibility of its first-ever net loss in smartphone sales by 2026. TM Roh, head of Samsung's mobile experience division, has alerted company executives about the challenges ahead. Historically, Samsung has remained profitable even during economic downturns or supply chain disruptions caused by the pandemic. However, the escalating prices of essential components like DRAM and NAND memory, which are critical for AI functionalities, pose a significant threat to profitability. Currently, the LPDDR5x memory, vital for most mobile devices, is becoming increasingly expensive, nearly doubling in cost. This shift in component pricing dynamics means that RAM could represent more than one-third of the cost of manufacturing budget smartphones by mid-2026. While the Galaxy S26 has shown strong sales, the overall market conditions and component shortages could undermine Samsung's financial performance in the smartphone sector.