Soaring Memory Prices: Will the Galaxy S26 See a Price Hike?

Galaxy S26 Expected to See First Price Hike in Over Three Years
Tae-moon Roh: "Rising Component Costs Will Impact Product Prices"

There are growing expectations that the price of Samsung Electronics' Galaxy S26 series, set to be released next month, will increase for the first time in over three years. This is due to the sharp rise in memory semiconductor prices driven by expanding demand for artificial intelligence (AI).

On January 5 (local time) in Las Vegas, Nevada, Samsung Electronics CEO and DX (Device eXperience) Division Head Roh Taemoon stated at a press conference, "Among the various business environments this year, we are particularly concerned about the rising cost of key components, especially memory prices," adding, "The increase in the price of major components will inevitably have some impact on the products we sell, in one form or another."

Samsung Electronics CEO and DX Division Head Tae-moon Roh is holding a press conference in Las Vegas, USA, on the 5th (local time), ahead of the opening of the world's largest electronics and IT exhibition, CES 2026. Photo by Samsung Electronics

Roh further explained, "We are working with our partners to minimize the impact of rising prices for key components such as memory," but also acknowledged, "The increase in the price of major components will affect both shipment volumes and the market."

Samsung Electronics has also stated that the launch price of the Galaxy S26 has not yet been finalized. However, the industry believes that, given the steep rise in component costs-centered on memory semiconductors this year-it will be difficult to maintain the same price level as previous models. Roh's remarks are thus interpreted as an indication that a price increase for the Galaxy S26 series, scheduled for release on February 25, is being considered.

Since the launch of the Galaxy S23 series in 2023, Samsung Electronics has maintained a policy of price freezes. When the S24 was released, only the Ultra model saw a price increase. For last year's S25 series, prices for all models were frozen, even though they were equipped with Qualcomm's Snapdragon application processor (AP), which was reportedly more expensive than its predecessor.

However, the recent surge in memory semiconductor prices-rising by double digits year-on-year due to increased AI demand and supply adjustments-appears to be a significant factor. In fact, Samsung Electronics' 16GB DDR5 memory for PCs was priced at 62,000 won at retail in February last year, but is now selling for over 300,000 won this month. The high proportion of memory costs in premium smartphone manufacturing is also believed to be a contributing factor.

Market research firm Counterpoint Research forecasts that the average selling price (ASP) of smartphones will rise by 6.9% this year compared to last year, due to increased cost pressures.

An industry insider commented, "With memory and core component prices rising sharply, it is realistically difficult to maintain previous price levels," adding, "Samsung will have no choice but to fine-tune its pricing strategy to balance profitability and market competitiveness."