Samsung Electronics' Device Experience (DX) division is responding to declining profitability due to rising memory semiconductor prices by expanding smartphone sales and improving its business structure.
According to Yonhap News on the 19th, Samsung held a management briefing for employees at its Suwon facility, led by CEO and DX division head Lee Tae-moon.
In the first half of this year, the DX division's revenue increased by about 2% compared to the same period last year. However, operating profit fell to 2.1 trillion won, just a quarter of the 8 trillion won reported in the first half of last year. This decline is attributed to a more than fourfold increase in memory prices compared to last year, which has raised the cost burden for finished products like smartphones.
For the second half of the year, Samsung proposed key tasks for the DX division, including expanding market share, improving its structure, and preparing innovative products for next year. The strategy aims to capitalize on competitors' price increases and adjustments in production volumes by boosting sales of the Galaxy S26 and Galaxy Z Fold 8 series.
Additionally, regarding the compensation gap raised by DX employees in comparison to the semiconductor division, Samsung reaffirmed its commitment to a performance-based compensation principle. Since 2009, the company has operated its finished product and component businesses independently in terms of personnel, finance, and accounting functions to protect customer information. It clarified that there has been no precedent for sharing performance bonus resources between different divisions.
Meanwhile, the largest union in the DX division, the Samsung Electronics Labor Union, plans to hold a rally near the Seocho headquarters on the 21st, with about 3,000 participants expected. The union is reportedly demanding a separate compensation plan for DX employees.
* This article has been translated by AI.
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