From Galaxy S26 to Tablets, Price Hikes Reflect Samsung's Struggle With Rising Costs

Price Increase for S26 Only Seven Months After Launch

Smartphone and Tablet Prices Adjusted Due to Surging Component Costs

Mobile Division Expected to Remain in the Red for Q3 Despite Strong Sales

Although Samsung Electronics' Mobile eXperience (MX) Division saw double-digit sales growth in the second quarter of this year thanks to strong sales of the Galaxy S26, it still posted an operating loss. To protect profitability amid rising prices of key components such as memory chips, the division has increased the prices of both existing smartphone models and newly launched tablets.

Since October 1, Samsung Electronics has raised the prices of the Galaxy S26, S26 Plus, and S26 Ultra 256GB and 512GB models by 149,600 won each. The price of the S26 Ultra 1TB model has been increased by 276,100 won. This comes about seven months after their initial launch in March.

Galaxy S26 Ultra photo. Photo by Jin-Hyung Kang

Prices for the new tablets have also risen compared to previous models. The Galaxy Tab S12 Ultra 256GB model, set to launch on October 7, is now priced at 1,899,700 won, which is 301,400 won higher than its predecessor's release price of 1,598,300 won. The 512GB model (2,198,900 won) is up by 435,700 won, and the 1TB model (2,798,400 won) has increased by 391,600 won.

The main reason for these price hikes is the increased cost burden due to a sharp rise in memory chip prices. As memory manufacturers have focused their production capacity on high bandwidth memory (HBM) and server DRAM, which are used for artificial intelligence (AI) applications, the supply for smartphone DRAM and NAND flash has tightened and prices continue to rise. According to market research firm TrendForce, the contract prices for standard DRAM are expected to climb by 10–15% quarter-on-quarter in the fourth quarter of this year, while NAND flash contract prices are forecast to increase by 15–20%.

Global smartphone makers are also reflecting higher component costs in their product pricing. According to data released last month by market research firm Counterpoint Research, the average global smartphone price has risen by 15% compared to the beginning of the year, while the price of new models is up by an average of 25% compared to comparable models from the previous year. Last month, Apple increased the price of the iPhone 17 series by 160,000 won after unveiling the iPhone 18 Pro series. Likewise, last month, Huawei's Mate 80 Pro and Pro Max models were raised by 1,000 yuan (about 200,000 won), and Xiaomi 17 models by 300 yuan (about 60,000 won).

Samsung Electronics has not been immune to rising costs. According to Samsung Electronics' semiannual report, the price of mobile memory chips in the first half of this year surged by about 211% compared to the average last year. The prices of mobile application processors (AP) and camera modules have also climbed by about 5–6%. As a result, the MX Division, despite a 14% year-on-year sales increase in the second quarter with strong sales of the Galaxy S26 and A series to 3.32 trillion won, still had to withstand an operating loss of 700 billion won.

Securities firms estimate that the MX Division will post an operating loss of around 1 trillion won in the third quarter. Their projected figures for operating loss are: Yuanta Securities at 900 billion won, Daishin Securities at 1.435 trillion won, Kiwoom Securities at 1.748 trillion won, and Eugene Investment & Securities at 1.8 trillion won.

Meanwhile, the Galaxy Z Fold 8 series has maintained its original launch price. An industry insider explained, "Because the foldable phone was released later than the S26, the increased component costs appear to have already been reflected in its launch price, and there are currently no plans for another price hike." The insider added, "If this round of price adjustments raises the average selling price, it may offer room for profitability to improve."

This content was produced with the assistance of AI translation services.