Samsung’s Galaxy S26 makes big bet on thin phones, in-house chips | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Samsung’s next flagship phone, the Galaxy S26, won’t be out for at least a few months, according to Tom’s Guide, but the rumors suggest that this isn’t just another spec bump.

It’s a risky gamble on design and technology that comes at a critical moment as Samsung’s money-generating engine goes from creating phones to making AI chips for cloud data centers.

Samsung had its best quarter ever in the third quarter of 2025, with $60.4 billion in consolidated sales and $8.6 billion in operating profit. This was based on 86.1 trillion won in sales and 12.2 trillion won in profit.

The key reason for the significant surge in income was the high demand for chips that work with AI. The Mobile eXperience and Networks segment, on the other hand, still made around $23.9 billion in revenue and $2.5 billion in operating profit.

So even if semiconductors are clearly back on top, the Galaxy S26 cycle will be critical for both the P&L and how investors evaluate Samsung’s ability to generate more value from high-end devices.

Investors will watch whether S26 boosts Samsung’s mobile margins.

Photo by SOPA Images on Getty Images

Galaxy S26 leaks: thinner body, magnetic charging, familiar camera formula

A few key themes are driving the latest revelations about the design.

TechRadar reports that the basic Galaxy S26 will be around 6.9mm thick, which is a bit less than the S25 and thinner than many of the next-generation flagships set for release in early 2026.

The renderings seen in an Alibaba post reveal a flat screen that is 6.3 inches wide and a new pill-shaped triple-camera module that looks more like the Galaxy Z Fold 7 than the separate “floating” lenses on the current S-series.

Under the glass, the optics story looks more like an evolution than a revolution. People that work in the field are saying:

The mainstream versions include a 50-megapixel primary sensor that has been improved and works better in low light.
The S26 Ultra doesn’t have a new camera stack; instead, it has a bigger ultrawide sensor and better telephoto tuning.

The most visible modifications to the hardware are the charging and accessories. Some reports say that all S26 models from Samsung use Qi2 magnetic wireless charging. This features a built-in magnet ring that keeps the phone firmly linked to chargers and battery packs, making it seem like MagSafe for Galaxy users.

If that is still the case, the product story in a nutshell is: a slimmer frame, a more unified design, and magnetic charging added, all while keeping the same camera formula.

Samsung’s numbers: How big is mobile today, in dollars?

To comprehend what the S26 can do, it helps to know Samsung’s current statistics.

Samsung’s third-quarter 2025 results and breakdowns by industry show:

The group’s sales were roughly $60.4 billion.
Samsung operational profit stood at about $8.6 billion.
MX and Networks made roughly $23.9 billion.
Operational profit for MX and Networks was over $2.5 billion.
The chip segment, called Device Solutions, saw around $23.4 billion in sales and nearly $4.9 billion in operating profit.

Those figures allow for a few simple, transparent calculations. MX made 3.6 trillion won in profit on 34.1 trillion won in sales, which is around 10.6% of its operating margin. Samsung made 12.2 trillion won in profit on 86.1 trillion won in sales, which is around a 14.2% margin.

Mobile and networks function below that average, whereas chips work above it.

The semiconductor business made around 7 trillion won in operational profit, which is about twice as much as MX’s 3.6 trillion won, even though the two sectors had identical sales levels.

Industry analysts told Reuters that Samsung sold over 61 million handsets at an average price of $300 to $305, bringing in roughly $18.5 billion. The MX total is now nearly $23.9 billion, due to the addition of tablets and wearables.

So within a company that makes $60 billion a quarter, Samsung’s mobile division generates around $24 billion with an 11% margin. Chips now make up most of the earnings.

That’s the Galaxy S26 cycle’s financial goal.

What a stronger S26 cycle could mean, in dollars

Based on the sales, profit, and margin numbers that Samsung has made public, as well as industry projections for shipments and average pricing, we can identify two realistic possibilities.

Samsung sent out roughly 61 million smartphones in the last quarter, with an average selling price of $300-$305. This means core smartphone sales were about $18.5 billion. MX as a whole made around $23.9 billion and had an operating profit of about 10.6%. We can use those numbers to start the S26 cycle.

Scenario 1: A little bump

If units go up by 5% and prices go up by 3%, this is about the same as Samsung’s recent growth in shipments of low- to mid-single-digit units and a little increase in ASP.

That mix leads to an 8% rise in smartphone sales. When you add $1.5 billion to the $18.5 billion base, the revenue goes up to nearly $20.0 billion.

If MX maintains its existing 10.6% margin, the extra money will bring in around $160 million more in operational profit. That would be a mid-single-digit increase on the MX earnings base of around $2.5 billion.

Scenario 2: A stronger “mini super-cycle”

Let’s say that smartphone sales increase by around 12%, thanks to rising demand for slimmer designs, higher sales of the S26 Ultra, and expanded storage options; margins rise from 10.6% to 11.6%.

That brings in around $20.7 billion for smartphones and raises overall MX revenue from $23.9 billion to nearly $25.9 billion.

MX makes around $3.0 billion in profit, which is about $400 million to $500 million more every quarter than it does now.

The chip wrinkle: Exynos 2600 vs. Snapdragon

There is another important lever behind those numbers: which chips power the S26.

Reports say that Samsung will break apart the family as it has in the past:

Depending on where you live, the Galaxy S26 and S26+ will employ either Qualcomm’s newest Snapdragon or Samsung’s own Exynos 2600.
The Galaxy S26 Ultra will probably use a unique Snapdragon chip across the world.

It’s clear what Samsung wants. Every S26 sold with Exynos instead of Snapdragon preserves more of the bill of materials within the firm and works well with the profitability of its larger chip division.

The danger is just as clear. If Exynos 2600 doesn’t do as well as Snapdragon models in terms of heat, battery life, or performance, the firm may have to give Exynos customers more money and run more ads in those areas. That would rapidly show up as pressure on MX’s ASPs and margins.

The S26 chipset combination is more than just a spec sheet for tech fans. It’s an actual factor that determines whether the S26 cycle is more like Scenario 1 or Scenario 2 on the P&L.

These aren’t guesses; they’re merely straightforward, number-based “what-if” calculations based on Samsung’s announced sales, margins, shipping projections, and current price patterns.

But they indicate why the S26 cycle is still important in a company whose mobile sales bring in around $24 billion a quarter and for which chips are now the main source of earnings.

What investors should watch into the S26 launch

Before Samsung’s Galaxy Unpacked in early 2026, there are a few things more important than leaked renderings.

Investors will want to know whether smartphone shipments and average pricing can keep going up in the mid-single digits, or whether demand is beginning to level out.

They will also keep an eye on MX margins. Holding steady at about 10.6% would be acceptable. If it goes up, it would mean that premium Android phones have genuine price power.

The Exynos question is also there. Does Samsung maintain the Exynos 2600 in Europe and Korea, or does it expand Snapdragon coverage if evaluations are bad?

And most importantly, can the chip division keep making around $5 billion in operating profit every three months while MX gets a boost from the S26 cycle, instead of relying on foldables and the mid-tier lineup?

The S26 won’t be the most important thing about Samsung if it focuses on AI first, but the numbers suggest that it still matters. If Samsung can make money off of a slimmer frame, magnetic charging, and better silicon, the S26 will merit a spot on the earnings call, not just on stage.