Samsung Flags Possible Price Increases Due to Memory Supply Challenges
Samsung’s mobile division Co-CEO, TM Roh, has cautioned that the company is confronting one of the toughest pricing environments for memory chips in recent times. Speaking at CES 2026, Roh indicated that this situation could necessitate adjustments in smartphone pricing. This warning comes as Samsung, a major player in the electronics market, grapples with rising costs that affect not only smartphones but also TVs and other smart devices.
Impact on Samsung’s Smartphone Strategy and Pricing
Wonjin Lee, Samsung’s Global Marketing Head, elaborated on the issue in an interview with Bloomberg, mentioning that the firm is considering “repricing” its phones to align with the evolving economic conditions. Despite Samsung’s semiconductor division being the largest chip manufacturer in 2024, it lost the memory chip crown to SK Hynix in 2025. This shift has complicated Samsung’s ability to source memory chips affordably for its smartphone production.
The timing of these supply challenges is particularly sensitive for Samsung, as it prepares to launch the Galaxy S26 series. With Apple recently overtaking Samsung as the world’s largest smartphone maker and the iPhone 17 series performing strongly, Samsung faces pressure not to alienate customers with price hikes. Reports suggest that Samsung may opt for a price freeze on the S26 launch in select markets to remain competitive.
Broader Context: AI and Memory Demand
Samsung executives also highlighted the role of artificial intelligence in driving memory demand. AI has become a central focus for technology companies worldwide, and ironically, it is a key factor behind the current surge in memory prices. Samsung’s own research indicates a significant increase in AI brand awareness among Galaxy users, rising from 30% to 80% over the past year.
Looking ahead, Samsung plans to ship approximately 400 million new AI-enabled devices this year, spanning smartphones, televisions, and home appliances. This ambitious target would effectively double the existing number of Galaxy AI devices in use, underscoring the company’s commitment to integrating AI across its product ecosystem.
What to Expect Next
As Samsung navigates these memory supply constraints and pricing pressures, the upcoming Galaxy S26 launch will be a critical moment for the company. Observers will be keen to see how Samsung balances the need to manage costs with the imperative to stay competitive against Apple and other rivals. The evolving memory market and AI-driven demand will continue to shape Samsung’s strategy in 2026 and beyond.
Source: on Bloomberg