Flagship launch tests consumer demand
Samsung Electronics unveiled its new Galaxy S26 lineup on Thursday, introducing higher prices for select models in the United States and South Korea as surging memory chip costs squeeze margins.
The base Galaxy S26 is priced at $899 in the U.S., a 4.7% increase from its predecessor, while the S26 Plus will sell for $1,099, up 10%. The Ultra variant retains its previous pricing. In South Korea, the base model’s price has been lifted by 8.6%.
The rollout comes as Samsung seeks to regain momentum in the premium smartphone market after losing global leadership last year to Apple, which saw strong demand for iPhones in China and India.
AI features and in-house processors
The S26 series integrates artificial intelligence capabilities from Perplexity and Google’s Gemini, alongside an upgraded version of Samsung’s Bixby assistant. The company is emphasizing AI-driven features as a competitive differentiator in a crowded high-end market.
Samsung has also equipped certain models with its in-house Exynos processors, reversing its prior reliance on Qualcomm’s Snapdragon chips in the S25. Analysts view the move as a way to strengthen Samsung’s chip design division and potentially improve profitability in its mobile segment.
The Galaxy S26 Ultra introduces what Samsung describes as the industry’s first integrated mobile privacy display, designed to limit visibility from side viewing angles.
Memory market pressures intensify
Rising component costs are a key driver behind the pricing adjustments. A global buildout of AI data centers by major technology firms has tightened supply in the memory market. Chipmakers have prioritized higher-margin data center components, including high-bandwidth memory, over consumer device parts.
Market research firm TrendForce forecasts that contract prices for conventional DRAM could jump 90% to 95% in the first quarter of the year compared to late 2025 levels.
Samsung previously cautioned that chip shortages linked to the AI boom were intensifying, benefiting its core semiconductor business but creating cost headwinds for smartphones and display units.
The Galaxy S26 series is scheduled for release beginning March 11, as Samsung gauges whether consumers will absorb higher price tags in an increasingly competitive premium segment.
