Samsung Electronics (005930) has been thrown into emergency mode as Middle East airspace closures following U.S. and Israeli airstrikes on Iran threaten the global rollout of the Galaxy S26, set to begin in the United States and Europe on the 11th of this month.
The company fears disruptions to initial product supply not only in the Middle East but also in major markets including the Americas and Europe.
According to industry sources on the 4th, Samsung Electronics' Mobile eXperience (MX) division is experiencing significant difficulties in timely delivery of the Galaxy S26 after major Middle East air cargo routes simultaneously shut down due to the Iran situation. The Americas and European markets are the primary concern. Current Galaxy S26 inventory in these regions reportedly stands at only two to three weeks' worth of supply.
As the situation intensified, Roh Tae-moon, President of Samsung Electronics' Device eXperience (DX) division, designated "timely supply of new products" as the top priority. He is monitoring logistics conditions in real time and has ordered company-wide response measures. The company is currently exploring multiple alternatives including alternate flight routes, land transportation, and sea routes. However, choosing detours would require additional delivery time and inevitably drive up ancillary costs such as fuel expenses.
The concern is that this crisis could squeeze profitability beyond mere supply delays. Mobile memory semiconductor prices have already surged, and logistics cost burdens are now mounting. According to Samsung Electronics' consolidated audit report, transportation costs reached 2.5121 trillion won last year.
If the Iran situation becomes prolonged, logistics cost burdens are expected to intensify further. Additionally, as war clouds gather over the Middle East, concerns are emerging that dampened consumer sentiment could push initial sales below expectations.
Market wariness about earnings downgrades is also growing. In a February report issued before the U.S. airstrikes on Iran, Macquarie Securities had already halved its operating profit estimate for the MX division this year from 6.1 trillion won to 3 trillion won. An industry official observed, "If full-scale war risks and increased shipping costs are reflected in earnings, profit forecasts could fall even more significantly."
