{"id":540177,"date":"2026-03-16T13:35:13","date_gmt":"2026-03-16T13:35:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/540177\/"},"modified":"2026-03-16T13:35:13","modified_gmt":"2026-03-16T13:35:13","slug":"samsungs-mobile-unit-is-in-emergency-mode-despite-record-s26-pre-orders","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/540177\/","title":{"rendered":"Samsung’s mobile unit is in ’emergency’ mode, despite record S26 pre-orders"},"content":{"rendered":"

\"Samsung<\/p>\n

Hadlee Simons \/ Android Authority<\/p>\n

TL;DR<\/p>\n

Samsung Electronics is reportedly in \u2019emergency management\u2019 due to rising prices and the possibility of a deficit.
\nSamsung is taking drastic measures as a result, including economy-class airfare for most executives.
\nThis news comes despite the Galaxy S26 series apparently breaking pre-order records.<\/p>\n

The smartphone industry is facing a RAM crisis<\/a> as memory prices skyrocket, while other components are also seeing price hikes. Now, it turns out that mobile juggernaut Samsung<\/a> is taking radical measures.<\/p>\n

FNN News<\/a> reports (h\/t: Jukan05<\/a> on Twitter) that Samsung Electronics has entered \u201cemergency management\u201d due to rising semiconductor and logistics prices. The AI sector\u2019s demand for RAM has led to unprecedented price increases, while components like displays and chipsets have seen price hikes too. It also comes amid the US-Israeli war in Iran, which has seen rising oil prices as a result.<\/p>\n

Don\u2019t want to miss the best from Android Authority?<\/p>\n

\"google\"google<\/a><\/p>\n

\u201cWith cost pressures severe due to rising semiconductor prices and the increasing burden of logistics costs, the MX business unit has ultimately been forced to enter an emergency management system,\u201d a Samsung official told the outlet.<\/p>\n

FNN News also reports that Samsung\u2019s Mobile Experience (MX) division is projected to see its operating profit margin drop from 11% in Q1 2025 to ~3% in Q1 2026, citing market forecasts. It\u2019s believed that this could further drop to ~2% from Q2 2026, while some Samsung employees apparently think even a 1% profit margin will be tough to achieve. In other words, it\u2019s entirely possible that Samsung\u2019s mobile unit posts a deficit.<\/p>\n

So what steps will be taken with emergency management? The outlet reports that the Device Experience (DX) division, which includes the MX unit, has ordered a 30% reduction in costs.<\/p>\n

Samsung has also apparently made major changes to flights for employees:<\/p>\n

Previously, all executives below the vice president level in the DX division were provided with business class seats for business trips with flight times of less than 10 hours; however, starting today, they will be assigned economy class seats to cut costs.<\/p>\n

Finally, it\u2019s predicted that Samsung might reassign employees to different internal business units and push for some workers to take voluntary retirement.<\/p>\n

The fact that Samsung is taking such drastic measures amid growing flagship phone sales isn\u2019t a good sign at all for the rest of the industry. If the world\u2019s number one Android phone maker is feeling the economic pinch, then less popular brands clearly aren\u2019t safe by any measure.<\/p>\n

Thank you for being part of our community. Read our\u00a0Comment Policy<\/a> before posting.<\/p>\n","protected":false},"excerpt":{"rendered":"Hadlee Simons \/ Android Authority TL;DR Samsung Electronics is reportedly in \u2019emergency management\u2019 due to rising prices and…\n","protected":false},"author":2,"featured_media":540178,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[49,48,848,8329,15488,61],"class_list":{"0":"post-540177","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-technology","8":"tag-ca","9":"tag-canada","10":"tag-samsung","11":"tag-samsung-galaxy","12":"tag-samsung-galaxy-s26","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/540177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=540177"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/540177\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/540178"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=540177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=540177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=540177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}