Samsung profits soar on memory boom

Samsung just posted a staggering $37.9 billion in first-quarter profit, fueled almost entirely by a memory chip boom. With sky-high demand for high-bandwidth memory (HBM) and tight supply on classic DRAM, the company is doubling down—planning a $73 billion investment to lead the AI chip race. The stakes? If Samsung can scale production without flooding the market, it keeps memory prices and mobile margins strong. But if rivals like SK Hynix or Micron catch up, or if cloud orders slow, the party could end fast.

But here’s the catch: even as its memory business thrives, Samsung is axing its ambitious Galaxy Z TriFold foldable, despite the device selling out. Why kill a hot product? Component costs—especially premium memory—make each unit less profitable than diverting that memory to higher-margin AI chips or flagship phones. Meanwhile, Samsung’s flagship phones are getting more expensive but less exciting, with critics warning that midrange buyers might jump ship to rivals like Google’s Pixel.

The strategy shift extends to software too. Samsung is ditching its own Messages app by mid-2026 and pushing users to Google Messages, streamlining support and improving security but giving up a bit of ecosystem control. Reporting from Bloomberg, Yahoo Finance, Reuters, WIRED, and Ars Technica underscores just how high the stakes are as Samsung balances chip supply, device strategy, and Google partnership—all with a crucial earnings update looming on April 30.

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