Samsung’s Exynos Chip Costs May Hike Galaxy S26 Price
▼ Summary
– Samsung is reportedly forced to increase the launch price of the Galaxy S26 due to rising memory and chip costs, driven by high AI industry demand.
– The company had absorbed costs and delayed price increases for previous models, like the S25, but current market pressures make this unsustainable.
– A key factor is the strain on the RAM market, as manufacturers repurpose capacity for high-bandwidth memory (HBM) needed for AI, creating shortages.
– Samsung does not get its own Exynos processors at a discount, and broader industry cost pressures prevent localized pricing for different chip variants.
– While exact price changes are unconfirmed, Samsung may retain promotional storage upgrades to help retain customers despite the overall price hike.
Industry whispers point to a significant shift for Samsung’s upcoming flagship, with the Galaxy S26 series likely launching at a higher price point than its predecessors. After years of absorbing rising component costs to maintain stable pricing, the company appears to have reached a financial breaking point. The primary culprit is a global memory chip market stretched to its limits, largely due to unprecedented demand from artificial intelligence companies. This surge has led manufacturers like Samsung to prioritize high-bandwidth memory (HBM) production for AI servers, creating a vacuum and driving up costs for the standard RAM used in smartphones.
Insiders suggest Samsung has delayed incremental price increases for several generations. Last year, a planned hike for the Galaxy S25 was reportedly scrapped at the last minute by mobile chief Roh Tae-moon, keeping prices consistent with the S24 series. That decision now seems like a temporary reprieve. While past increases were tied to general inflation, the memory cost surge fueled by AI demand is the specific force pushing the S26’s expected price over the edge.
A revealing detail from recent reports indicates that Samsung does not get its own Exynos chips at a discount compared to rival manufacturers. This counters long-standing speculation and suggests the semiconductor division operates at arm’s length, absorbing its own costs to remain competitive. For the S26 line, the Exynos processor is anticipated to power European models, while U.S. variants will likely use Qualcomm’s Snapdragon 8 Elite Gen 5. Despite this regional split, Samsung is expected to apply any price increase broadly across markets, as the entire industry grapples with the same component shortages and cost pressures.
The company’s strategy of absorbing costs has had clear benefits, with the Galaxy S25 series enjoying a strong sales boost partly due to its stable pricing. This year, however, the financial margins are reportedly too thin to continue that approach. Samsung faces a delicate balancing act: raising prices risks losing market share, especially if competitor Apple chooses to freeze its iPhone pricing for another consecutive year.
One potential customer-friendly move still under consideration is the continuation of pre-order storage upgrade promotions. There was speculation this program might be canceled, as higher storage capacities are directly impacted by memory component costs. Keeping it alive could be a key tactic to soften the blow of a higher base price and retain consumer loyalty.
The exact scale of the increase remains unclear, with some reports suggesting the standard S26 and S26+ models will bear the brunt while the Ultra variant maintains its current price tag. Ultimately, all speculation will end when Samsung unveils the devices and their official pricing on February 25.
(Source: 9to5Google)
