SEOUL, Feb 26 (Reuters) - Samsung Electronics on Thursday launched its flagship Galaxy S26 smartphones with higher prices for some models in the United States and South Korea, testing demand as
Samsung launches Galaxy S26, raises prices as chip costs soar in key markets
Pricing Strategy and Market Drivers
SEOUL, Feb 26 (Reuters) - Samsung Electronics on Thursday launched its flagship Galaxy S26 smartphones with higher prices for some models in the United States and South Korea, testing demand as soaring memory chip costs pressure margins.
Rivalry with Apple
The rollout, which integrates Perplexity's AI features along with Google's Gemini and an upgraded Bixby, follows Samsung's loss of smartphone leadership last year to Apple, which benefited from strong iPhone demand in China and India.
Chip Shortage and AI Demand
The company last month warned of a worsening chip shortagedriven by the AI boom, with strong memory demand supporting its core chip business but pressuring smartphones and display units.
Data Center Priorities Lift Memory Prices
A global push by firms such as Meta, Google and Microsoft to build AI infrastructure has absorbed much of memory supply, lifting prices as chipmakers prioritise higher-margin data centre components such as high-bandwidth memory chips over consumer devices.
U.S. and South Korea Price Changes
Samsung priced the base Galaxy S26 at $899 in the United States, up 4.7% from the previous model, and the S26 Plus at $1,099, up 10%. Prices for the Ultra were unchanged.
In South Korea, it raised the base model price by 8.6%.
Analysts’ View on Chip Design
Processor Mix: Exynos vs Snapdragon
The company also equipped some S26 models with in-house Exynos processors after using Qualcomm’s Snapdragon chips for the S25, a shift analysts said could support its chip design business and mobile margins.
Built-in Privacy Display
Samsung said the S26 Ultra includes what it calls the industry's first built-in mobile privacy display, limiting side viewing angles.
Availability and Launch Dates
The company said it will begin rolling out the S26 series on March 11.
TrendForce DRAM Price Outlook
Market tracker TrendForce expected conventional DRAM contract prices to surge by 90% to 95% in the January to March period of this year, from the final three months of 2025.
Apple's Tim Cook said in a post-earnings conference call in January he expected memory chip prices to increase sharply, but declined to answer analysts' questions about whether Apple would raise prices in response.
(Reporting by Heekyong Yang; Editing by Nivedita Bhattacharjee)
