By now we should all have an epiphany: the current Samsung Mobile division (MX) exists solely to help the Semiconductor division (DS) clear its inventory. In essence, it is nothing more than a subordinate appendage of DS. The absolute overlord of Samsung Electronics has always been DS, never MX. The mission of MX is not innovation. It is to absorb DS’s inventory, contribute profits, and act as the most expensive, most reluctant, yet eternally obedient “fat sheep” of the entire Samsung empire. Inside the Samsung Group, MX is neither the boss nor the second-in-command. It is treated by DS as a personal ATM, by headquarters as a scapegoat, and by the market as a joke—an “eldest son at the bottom of the hierarchy” whose only purpose is to keep transfusing blood to others and is never allowed to complain. MX does not exist to win; it exists to “ensure DS never loses.” Whether MX itself survives is irrelevant. What matters is that it must continue to be milked dry. That is its fate. This now perfectly explains why Lee Jae-yong almost never bothers with MX and almost never mentions Galaxy, yet cares deeply about DS’s business. He knows full well: MX exists to serve DS. It is the fundamental guarantee that DS can keep generating profits. Those profits are extracted from consumers’ pockets: DS gets the money through MX’s hands. Since MX itself also needs to remain profitable, it is forced to follow two ironclad rules: 1. It must source the vast majority of its components from DS (screens, Exynos, memory, cameras, batteries, etc.). This is a direct mandate from Lee Jae-yong himself. 2. To protect its own profit margins, it must use the cheapest possible components (e.g., reusing the same HP2 sensor, screens, and batteries for years on end). This is demanded by Roh Tae-moon (head of MX). If he wants to keep his throne and his massive paycheck, he has no choice. So where do DS’s high-end, high-cost components go? Exactly: they are sold to Apple and Chinese brands, who are willing to pay top dollar for DS’s premium parts. For example, the latest M14 OLED panels just went to vivo; many of the most powerful 200-MP telephoto sensors have been sold to vivo and OPPO. While MX buys the low-end, low-cost stuff from DS to protect its margins, Apple and Chinese brands buy the high-end, expensive stuff from DS to boost their own product competitiveness. Result? Chinese brands and Apple get stronger → they crush MX in sales → MX, desperate to protect margins, doubles down on buying even cheaper, lower-spec parts from DS → Chinese brands and Apple get even stronger → they buy even more cutting-edge parts from DS → they crush MX even harder… This is a death spiral. One-sentence summary: The stronger DS becomes, the weaker MX gets. Every division at Samsung is selfish and only looks out for itself; they don’t care about their brother divisions. In reality, they are engaged in internal cannibalization, and MX will be the first division they bleed to death. This is the core logic I derived from applying category theory to Samsung’s corporate structure in the paper I published the other day. The final conclusion is: the decline of Samsung MX is inevitable and irreversible. Samsung Galaxy phones can never again achieve major innovation. Their future has already been permanently locked. The only possible turning point would be when Galaxy’s global market share drops below 15 %, or when it gets consecutively overtaken by Apple and Xiaomi. Only then might Lee Jae-yong finally realize the danger and be forced to make changes. So let’s just wait and look forward to that day.