Samsung execs warn of upcoming phone price hikes over memory shortages

Samsung Warns of Smartphone Price Hikes Amidst Critical Memory Shortages

The global tech industry is bracing for potential shifts in consumer pricing, with electronics giant Samsung signaling an imminent increase in smartphone costs. At the prominent CES 2026 trade show, TM Roh, Co-CEO of Samsung’s mobile division, issued a clear warning, stating the company faces "one of the harshest pricing situations in memory" and that "smartphone price adjustments may be necessary." This sentiment was echoed by Wonjin Lee, Samsung’s Global Marketing Head, who confirmed the company is actively considering "repricing" its handsets to align with current economic realities.

The Memory Market Crunch: Driving Up Device Costs

The core of this challenge lies within the semiconductor market, particularly the escalating cost of memory chips. While Samsung's semiconductor arm held the title of the largest chip maker in 2024, it conceded the memory chip leadership to rival SK Hynix in 2025. Despite its significant presence in chip manufacturing, Samsung's own mobile division is grappling with the difficulty of securing these vital memory components at competitive prices.

This dynamic creates a complex hurdle for Samsung's device manufacturing, directly impacting the final cost of its highly anticipated products.

Galaxy S26 Launch Faces Strategic Dilemma

The timing of these potential price hikes couldn't be more delicate for Samsung. With the iPhone 17 series performing strongly and Apple having recently surpassed Samsung as the world's largest smartphone maker, the upcoming launch of the Galaxy S26 series represents a pivotal moment. Introducing price increases at such a juncture could further challenge Samsung's competitive standing. Consequently, industry reports suggest that Samsung is contemplating a price freeze for the S26 launch in select markets, a move aimed at mitigating potential consumer backlash and maintaining market share.

AI's Role in Fueling Memory Demand

Ironically, a major driver behind the current memory price boom is the very technology that dominates much of the CES discussion: Artificial Intelligence. AI's rapidly expanding influence across the tech landscape necessitates vast amounts of high-performance memory, leading to increased demand and, subsequently, higher costs.

Samsung's executives highlighted the soaring interest in AI, noting that brand awareness for Galaxy AI among its user base has jumped from 30% to an impressive 80% within the last year. The company is poised to capitalize on this trend, planning to ship an ambitious 400 million new AI-powered devices this year, encompassing a wide range of products including smartphones, TVs, and home appliances. This significant push is projected to double the total number of Galaxy AI devices currently in circulation, further solidifying the link between AI adoption and memory market pressures.

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