Samsung Electronics introduced its newest Galaxy S26 smartphone lineup on Thursday from Seoul, implementing price increases for certain models in both American and South Korean markets as rising memory chip expenses squeeze profit margins.
The new device launch incorporates artificial intelligence capabilities from Perplexity alongside Google’s Gemini technology and an enhanced version of Bixby. This release comes after Samsung lost its position as the top smartphone manufacturer to Apple last year, as iPhone sales surged in Chinese and Indian markets.
Last month, the South Korean company cautioned about an intensifying semiconductor shortage fueled by artificial intelligence expansion. While robust memory demand has boosted Samsung’s primary chip division, it has created challenges for their smartphone and display sectors.
Major technology companies including Meta, Google, and Microsoft have been aggressively building AI infrastructure, consuming significant portions of available memory supplies. This has driven up costs as semiconductor manufacturers focus on producing higher-profit data center components like high-bandwidth memory rather than chips for consumer electronics.
In the United States, Samsung set the entry-level Galaxy S26 price at $899, representing a 4.7% increase from its predecessor. The S26 Plus model will cost $1,099, marking a 10% price jump, while the Ultra version maintains its previous pricing.
South Korean consumers will see an 8.6% price hike for the base model in their domestic market.
The company has also incorporated its own Exynos processors into select S26 models, moving away from Qualcomm’s Snapdragon chips used in the S25 series. Industry analysts suggest this change could benefit Samsung’s chip design operations and improve mobile device profitability.
Samsung highlighted that the S26 Ultra features what the company describes as the first integrated mobile privacy screen in the industry, which restricts viewing from side angles.
The S26 series will become available to consumers starting March 11, according to Samsung’s announcement.
Industry research firm TrendForce projects that standard DRAM contract prices will jump between 90% and 95% during the first quarter of this year compared to the final quarter of 2025.
During Apple’s January earnings call, CEO Tim Cook acknowledged expectations for sharp increases in memory chip costs but refused to discuss whether the company might raise its product prices in response to analyst inquiries.
