As semiconductor and labor costs rise uncontrollably, Samsung may need to increase Galaxy S26 prices to preserve profits amid the challenge of maintaining sales in a highly competitive market.
A report from The Bell, a South Korean media outlet, revealed that Samsung is struggling to control production costs for its new Galaxy S26 Series smartphones, which include the standard Galaxy S26, Galaxy S26+, and Galaxy S26 Ultra. The key factor making cost control difficult is the rising prices of semiconductor components.
The components with significantly increased costs include DRAM memory, OLED displays, and camera modules, coinciding with an industry-wide shortage of parts.
Because of these factors, Samsung has postponed the Galaxy S26 Series launch from the originally planned January 2026 to February 2026. This delay allows Samsung to decide on the most appropriate pricing structure amid rising labor costs and intense competition in the smartphone market, especially considering Apple’s well-priced iPhone 17.
Additionally, reports indicate that the Galaxy Z TriFold's launch price in South Korea is “below production cost.” This pricing strategy aims to stimulate the market. However, selling below market price is not an option for the Galaxy S26 Series because it is a key Samsung product contributing significantlyto the company’s profits.Currently,
Samsung is facing a difficult decision between maintaining profit margins by raising prices—which could burden consumers and affect sales—or keeping prices the same as the previous model but accepting inevitable profit declines.
Recent trends suggest consumers should prepare for some price increases on certain models so the company can sustain profitability.
Source:Android Police