[News] Samsung Reportedly Ends Galaxy Z Tri-Fold as Memory Costs Rise; Smartphone Margins at Risk

Rising memory costs are weighing on Samsung’s smartphone business, reportedly prompting the company to discontinue its Galaxy Z Tri-Fold. According to The Dong-A Ilbo, Samsung Electronics has decided to end domestic sales of the device on March 17, roughly three months after its official launch on December 12 last year. In the U.S.—where the Tri-Fold debuted later than in Korea—sales will continue until existing inventory is exhausted.

The report points to elevated production costs as a key factor behind Samsung’s decision to halt sales. Prices for core components including DRAM, NAND flash, and application processors (APs) have climbed sharply, leaving little to no margin for profitability if sales were to continue.

Samsung is reportedly trying to hold prices steady despite rising memory costs. As noted by Maeil Business Newspaper, its MX business unit had planned to freeze pricing for the Galaxy S26 lineup, but cost pressures limited this to the Galaxy S26 Ultra in overseas markets, with other models seeing increases. The report adds that the division is under growing pressure as rival Apple maintains stable pricing on its key products, including the iPhone.

According to TrendForce, surging memory prices are expected to significantly raise smartphone production costs in 2026. As a result, global smartphone output is projected to decline at least 10% YoY to around 1.135 billion units. TrendForce notes that memory, which historically accounted for about 10–15% of a smartphone’s BOM, has now risen sharply to 30–40%.

Rising Costs Squeeze Samsung MX, Trigger Emergency Measures

Amid rising component costs, sources cited by The Financial News say Samsung Electronics has introduced an emergency management system for its mobile division, following similar measures in its TV and home appliance businesses. Within the Mobile Experience (MX) unit, there are even concerns that, in a worst-case scenario, surging semiconductor procurement costs could lead to the company’s first-ever operating loss in this segment.

The Financial News reports that MX operating profit could drop to about 5 trillion won this year, down over 60% from 12.9 trillion won last year, with even a deficit not ruled out. Margins are also set to compress sharply, from around 11% in Q1 last year to about 3% in Q1 this year and roughly 2% from Q2, with internal views suggesting even 1% may be hard to achieve.

As part of its emergency management measures, the DX division has mandated a 30% cost reduction across all business units and revised its policies on business travel airfare, The Financial News reports. In addition, as performance continues to weaken, the MX and home appliances divisions are also expected to face internal restructuring measures such as “job redesign” and voluntary retirement, following the TV division, as noted by The Financial News.

Read more

• [News] Samsung Reportedly Asks Execs to Fly Economy as Mobile Risks Worst-Ever Q1 on Memory Costs
• [News] Samsung Reportedly Lifts Galaxy S26 Ultra 1TB 20% on Memory Costs, Entry Model Up 5.8%

(Photo credit: Samsung)