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flag Samsung's Galaxy S26 sales are strong, but supply issues and rising costs are slashing profits to 2%-3% amid a 30% cost-cutting push.

flag Despite strong pre-orders and positive reception for the Galaxy S26, Samsung’s mobile division is in crisis due to supply chain disruptions, production delays, and soaring costs from AI-driven demand, geopolitical tensions, and inflation. flag Internal reports reveal a 30% cost-cutting drive, including travel restrictions and staff reductions, as profit margins plummet from 11% to an estimated 2%–3% in Q1 2026. flag While sales remain robust, financial strain and operational challenges threaten long-term sustainability amid fierce competition.

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