Samsung Electronics’ shares rose 7.5% on Monday as the company prepares to report a strong increase in profit for the fourth quarter later this week.
The expected rise in earnings is mainly driven by the global shortage of memory chips, which has benefited Samsung’s semiconductor business.
The worldwide shortage has pushed up memory chip prices, helping Samsung’s core chip division, which is its largest source of revenue.
However, the same shortage has created challenges for the company’s smartphone business, its second-biggest revenue contributor. Higher component costs are squeezing margins and making it harder to maintain profitability in mobile devices.
A senior Samsung executive, Roh, said the company is not immune to the impact of the shortage.
He explained that the crisis is affecting not only smartphones but also other consumer electronics, including televisions and home appliances. According to him, the situation is unprecedented and has disrupted supply chains across the industry.
Roh did not rule out the possibility of price increases, saying some impact is unavoidable due to rising memory chip prices.
However, he added that Samsung is working closely with its partners on long-term strategies to reduce the pressure on consumers and limit the overall impact.
Market research firms such as IDC and Counterpoint have warned that the global smartphone market could shrink next year as higher component costs push phone prices up.
Roh also spoke about foldable smartphones, a segment pioneered by Samsung in 2019. He said growth has been slower than expected due to complex engineering and a lack of suitable applications.
However, he expects foldable phones to become mainstream within the next two to three years.
Samsung held nearly two-thirds of the global foldable smartphone market in the third quarter of 2025 but competition is increasing from Chinese brands like Huawei and from Apple, which is expected to launch its first foldable phone this year.