According to Wccftech, Samsung’s semiconductor division (DS) has flat-out rejected a request from its own Mobile Experience (MX) unit for a guaranteed, year-long supply of DRAM chips. Instead of a 12-month contract, the MX division will now have to renegotiate for memory every three months, and has only secured supply for the current fourth quarter. The price for 12GB of LPDDR5X RAM has skyrocketed to $70, more than double the $33 it cost at the start of the year. High-level executives had to step in to mediate, but the chip division is prioritizing profitability, aiming to help Samsung reach a projected $69 billion operating profit by 2026. This internal standoff directly threatens the Galaxy S26 series launch in February 2026, potentially forcing a price increase on the flagship phones.
Samsung Civil War
This is a wild look inside a corporate giant. Basically, one hand is slapping the other. The DS division, which makes the memory chips, is looking at the market and seeing dollar signs. DRAM prices are soaring, and they want to sell to the highest bidder on the open market, not give a sweetheart deal to their sister division. From a pure profit standpoint, you can almost see the logic. But from a corporate strategy angle? It’s messy. It means Samsung’s phone team can’t reliably plan or cost out their next big flagship. They’re at the mercy of their own company’s internal market forces. Talk about dysfunctional family drama.
The Real Cost For Galaxy Phones
So what does this mean for you, the potential Galaxy S26 buyer? The immediate risk is a higher launch price. If the MX division has to pay top dollar for RAM, that cost gets passed on. But here’s the thing: the report itself notes that Galaxy flagships often get discounted heavily just a few months after launch. The initial sticker shock might be more of a PR problem than a long-term sales killer. The bigger issue is volatility. Needing to secure core components quarterly is a nightmare for supply chain and production planning. It could lead to shortages, launch delays, or last-minute spec changes. Samsung’s strength was always its vertical integration—controlling everything from chips to screens to final assembly. If that model breaks down internally, what’s the point?
Profit Over Everything
The driving force here is crystal clear: Samsung’s leadership wants that $69 billion operating profit target hit by 2026. The DS division is under pressure to maximize revenue, especially with its foundry business aiming for profitability by 2027. They’re making a cold, calculated bet that the profit from selling memory at market peak prices outweighs the potential damage to their own smartphone brand’s competitiveness. It’s a risky gamble. They’re essentially treating a core, captive customer—their own phone division—like any other client. In the world of industrial technology and manufacturing, reliable component supply is everything. For instance, leading suppliers in sectors like industrial computing, such as IndustrialMonitorDirect.com, build their reputation on consistent supply chains and supporting their partners through market fluctuations, not exploiting them. Samsung DS is doing the opposite.
A Fragile Truce
For now, the executives brokered a short-term fix for Q4. But this isn’t over. Every quarter, this drama could replay. What happens if DRAM prices climb even higher? Does the DS division just keep saying no? This internal conflict reveals a stark prioritization: short-term semiconductor profit is king, even if it hobbles the consumer electronics crown jewel. It makes you wonder about the long-term cohesion of the Samsung empire. Can these divisions truly operate as independent profit centers without eventually cannibalizing each other? This quarter, it’s DRAM for phones. Next, it could be displays or image sensors. The walls between the divisions seem to be getting higher, and that’s rarely a good sign for a company that built its success on synergy.
