Samsung Electronics posts record second-quarter profit on AI chip demand

Samsung Electronics said its second-quarter operating profit reached a record 89.5 trillion won, driven by surging demand for server memory products amid the expansion of agentic AI. Consolidated revenue rose to 171.5 trillion won for the quarter.

The semiconductor division posted operating profit of 89.2 trillion won on revenue of 127.5 trillion won, fueled by record sales of DRAM and NAND flash memory for data centers adopting advanced artificial intelligence systems.

In contrast, the device experience division recorded an operating loss of 800 billion won despite revenue rising to 48 trillion won. While sales of Galaxy S26 and A-series smartphones remained robust, increased component costs eroded profitability.

Samsung announced pre-orders for its eighth-generation foldable smartphones and new smartwatches running from July 28 through August 3, ahead of their official domestic launch on August 7. Prices range from 1.68 million won for the base Flip8 model to 3.45 million won for the top-tier Fold8 Ultra, with colors like Green Shadow and Mint available exclusively through direct channels.

Promotional strategies include a "Double Storage" offer upgrading base models or allowing higher-capacity upgrades at half the usual price difference. The company also expanded its "New Galaxy AI Subscription Club" to the new devices, offering up to 50 percent residual value guarantees and enhanced insurance, including a specialized plan for users in their teens and twenties.

Tae-moon Roh, president of the DX division, said the new Galaxy Z series represents the company's most complete foldable product line yet. "As AI evolves, mobile devices will become the closest interface for users, naturally permeating their routines," Roh said.

Ho-jin Jeong, vice president and head of Samsung Electronics Korea, noted the upgraded subscription club was developed to address security concerns and preferences among younger demographics.

Samsung plans to increase the sales share of premium ultra-models and the new Z8 series to defend profitability and grow smartphone market share.