Rising component costs are affecting entry-level smartphone prices and may also impact high-end smartphones like the Galaxy S26, scheduled to launch next month.
The global shortage of memory components (RAM) is beginning to affect prices of entry-level smartphones. Recently, price increases for the Samsung Galaxy A07 5G were reported in India, a model soon to launch in Thailand. Retailers indicate Samsung will sell the base model with 4GB RAM and 128GB storage for about 15,999 rupees (approximately 5,500 baht), and the 6GB RAM/128GB storage model for 17,999 rupees (around 6,300 baht), marking a significant price jump compared to previous versions.
Comparing this to last year's Galaxy A06 5G, which launched at just 11,499 rupees and 12,999 rupees, the new model's price has surged by about 4,500 rupees, nearly 40%. Despite this, most technical specifications between the two remain similar. Both the Galaxy A06 5G and A07 5G use the same chipset, camera setup, and water resistance standard. The only upgrades are the screen refresh rate from 90Hz to 120Hz at the same 720p resolution, and an increased battery capacity to 6,000mAh.
Analysts attribute the unusual price hike in budget smartphones mainly to rising global RAM costs. This increase hits lower-tier devices harder than flagship models because budget phones have lower profit margins per unit. Manufacturers cannot absorb the higher costs and must pass them on to retail prices. In contrast, premium smartphones have more flexibility in pricing strategies.
This situation may serve as a crucial warning for those planning to upgrade smartphones in 2026. The price increase trend could spread to higher-tier Galaxy A Series models and flagship series like the Galaxy S26 launching next month. Experts advise consumers who urgently need a new smartphone to consider purchasing soon before prices rise further due to ongoing component cost pressures with no sign of relief.
/source:9to5Google