On Thursday, Samsung Electronics introduced its new Galaxy S26 smartphone series, announcing price hikes for certain models in the United States and South Korea, attributed to increasing costs of memory chips which are squeezing profit margins.
This release aims to help Samsung regain its foothold in the global smartphone industry, having slipped behind Apple last year, which saw strong demand for its iPhones in markets such as China and India.
In the U.S., the entry-level Galaxy S26 is now priced at $899, marking a 4.7% increase compared to the previous model, while the Galaxy S26 Plus is set at $1,099, which is a rise of 10%. The pricing for the Galaxy S26 Ultra has remained stable.
In South Korea, the base model of the S26 has seen an 8.6% increase in price.
The S26 series comes equipped with artificial intelligence advancements through Perplexity AI and Google’s Gemini platform, along with an enhanced version of Samsung’s Bixby voice assistant.
This product launch is occurring against the backdrop of a growing constraint in global chip supply. Last month, Samsung signaled that the rapid growth of AI infrastructure is exacerbating shortages in the semiconductor sector.
Technology giants such as Meta Platforms, Google, and Microsoft are contributing to this increased demand for AI infrastructure, which has significantly diminished the availability of memory chips, inflating their prices.
Market research firm TrendForce estimates that standard DRAM contract prices may rise between 90% and 95% in the first quarter compared to the last quarter of 2025.
Samsung has spotlighted the Galaxy S26 Ultra, noting it as having "the industry's first built-in mobile privacy display" engineered to minimize side viewing angles and secure on-screen information from prying eyes nearby.
Additionally, Samsung has integrated some models of the S26 with its proprietary Exynos processors, moving away from the prior S25 series that exclusively used Qualcomm's Snapdragon chips. Analysts suggest that this transition may bolster Samsung's chip development operations while reinforcing margins in its mobile division.
The global rollout of the Galaxy S26 series is scheduled to commence on March 11.
In related news, during a conference call in January following financial results, Apple's CEO Tim Cook predicted a significant rise in memory chip prices, although he did not confirm if Apple would similarly increase its device prices.
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