Samsung's labyrinthine corporate structure means that one segment's gains can indeed translate into another's losses. As a case in point, look no further than the South Korean behemoth's mobile-centric MX division, which has been forced to embark on a series of belt-tightening measures after it failed to win a reprieve on memory prices from Samsung DS. And, some of these new frugal measures now include a ban on traveling in business class.
Samsung MX division executives to only travel in the economy class
We reported recently that Samsung's mobile-focused MX division was under a lot of pressure from the behemoth's semiconductor-focused DS division and its refusal to grant the MX division a long-term LPDDR5X RAM supply contract for the Galaxy S26 series at favorable prices.
The MX division then tried to eke out some additional fiscal space for its plummeting margins by squeezing its distributors' margins and pushing for more "direct-to-consumer' sales.
This then led to a collective strike by those distributors, especially the ones based in Dubai, against the MX division's supposedly extractive policies, where they adopted "strategic negligence" as their modus operandi and "tripped over the official embargo dates," allowing the unreleased Galaxy S26 Ultra units to enter the grey market, ruining Samsung's 'Galaxy Unpacked' event in the process.
This brings us to the core of today's topic. According to a South Korean publication, Samsung's Device Experience (DX) division, which includes its mobile-focused MX unit, has instituted a series of cost-cutting measures in the face of the ongoing memory inflation, including a complete ban on traveling in business class. Previously, Samsung executives, even below the VP level, were allowed to avail a business class ticket when traveling abroad. Instead, all executives must now avail economy class seats. The division is also in talks to loosen its voluntary retirement eligibility criteria.
This comes amid increasing fears that Samsung's MX division might post a loss in the first quarter of 2026. Of course, at the other end of the spectrum, the South Korean behemoth's memory division is enjoying all-round sunny days. As we reported recently, Samsung's memory business reported revenue of 37.1 trillion won ($25.93 billion) in the fourth quarter of 2025, up 62 percent year-over-year and rendering Samsung the world's biggest maker of memory solutions.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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