Samsung's Record Profit Surge Masks an Internal Revolt Over Bonus Inequality
Published on 07/07/2026 at 02:43 | Redaktion boerse-global.de
A stunning 1,810% leap in operating profit should be a moment of unalloyed triumph for Samsung Electronics. Instead, the Korean tech giant finds itself grappling with a workforce rebellion just as it posts what may be its most profitable quarter ever. The cause: a jaw-dropping disparity in bonus payments between its semiconductor and smartphone divisions.
Samsung guided on Monday that second-quarter operating profit came in at roughly 89.4 trillion won ($69 billion), a figure that dwarfs the meager 4.7 trillion won recorded in the same period a year ago. Analysts had been expecting a slightly lower 86 trillion won, according to consensus estimates, making the company's own forecast a pleasant upside surprise. Revenue is expected at 171 trillion won, marginally below the 172 trillion won analysts had penciled in — a small miss that triggered some profit-taking. The stock closed at 318,000 won, still up 2.75% on the day and sporting a year-to-date gain of nearly 148%.
Yet behind those headline numbers lies a brewing storm. Samsung has set aside enormous provisions for performance-linked bonuses in its semiconductor unit — estimates range from 19 trillion to 40 trillion won, or roughly 10% of the chip division's operating profit as dictated by contract. Without that one-time charge, the operating result would have comfortably cleared the 100 trillion won threshold, according to analysts at Meritz Securities.
The bonus bonanza for chip workers has sparked fury among employees in the smartphone business. While semiconductor staff can expect massive cash payouts, their counterparts making the Galaxy Z Flip8 and Fold8 Ultra are receiving only a modest stock package. Protests erupted at Samsung's headquarters in Suwon, highlighting the widening gulf between the company's booming memory-chip operation and its struggling mobile division.
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The root of the tension is the AI-driven memory supercycle. DRAM prices surged 44% in the quarter, while NAND flash prices jumped 53%, according to Citi Research. Samsung is already shipping its first HBM4 chips for AI infrastructure, and the price rally shows no sign of abating. Nomura forecasts DRAM prices will climb another 24% in the third quarter and NAND a further 25%, while industry insiders see a 20% increase for DRAM alone. The company is exploiting tight supply conditions to the fullest.
But the memory-price explosion is a double-edged sword for Samsung's handset arm. Memory accounted for just 14% of a smartphone's bill of materials at the start of 2025; it now swallows roughly 40%. Samsung has responded by hiking prices: the upcoming Galaxy Z Flip8 will retail for 1.68 million won, 13% more than its predecessor, and international pricing for the Fold8 Ultra is also expected to rise. That strategy runs headlong into a weakening market. IDC forecasts global smartphone shipments will fall nearly 13% this year, putting Samsung's mobile unit at risk of slipping into the red.
Cloud-service providers, meanwhile, are the other side of the equation — and a potential risk. JPMorgan warns that memory chips already consume about half of hyperscalers' budgets this year, with that share set to exceed 70% in 2026. Any pullback in capital spending by the likes of Amazon, Microsoft, or Google could rapidly cool the memory market.
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For now, Samsung remains fully in expansion mode. Reports suggest management is considering a US stock listing, and the company plans to invest $1 billion in Vietnam, funded by fresh capital. The full quarterly report, including divisional breakdowns, is due on July 23, 2026. Until then, the preliminary numbers released this week will keep investors guessing whether record profits can outshine the internal discord and mounting headwinds in the smartphone business. The stock currently trades about 15% below its 52-week high — a gap that could narrow if Samsung can both deliver on adjusted earnings and calm the unrest at its headquarters.
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