Image Courtesy: Stefan VazharovSamsung’s mobile business has reported its first-ever quarterly operating loss, even as flagship smartphone sales remained strong, highlighting how soaring component costs driven by the AI boom are reshaping the industry’s economics. Samsung said revenue from its smartphone business increased thanks to strong demand for the Galaxy S26 lineup and A series devices, but rising memory and other component costs significantly reduced profitability. As AI infrastructure expands worldwide, prices for memory and storage components have climbed sharply, increasing production costs for smartphone makers. Samsung said its memory business achieved record quarterly revenue and operating profit as demand for AI-related hardware continued to surge. While Samsung’s semiconductor business is benefiting from unprecedented demand, its smartphone division is facing mounting cost pressures that could eventually lead to higher prices for consumers.