Reports suggest smartphone prices are poised to rise as the booming AI industry drives up demand for memory and storage chips. Suppliers are struggling to keep pace, creating shortages that ripple through the consumer electronics market. In line with those trends, a new ETNews report hints that the upcoming Galaxy S26 series could see higher starting prices—news that won’t please Samsung fans.
Samsung is reportedly preparing to raise prices across all three Galaxy S26 models. Specific numbers for the Korean or international markets are not yet available, but this marks a break from Samsung’s recent pricing consistency. For the Galaxy S25 lineup launched earlier this year, Samsung kept prices identical to the Galaxy S24 series, mirroring strategies adopted by Apple and other major competitors.
Apple’s Pricing Strategy
For years, Apple has maintained a $799 starting price for its base iPhone models. However, recent lineup adjustments have effectively nudged the average selling price upward. ETNews claims Apple already raised iPhone 17 prices—a partial truth. In reality, Apple eliminated its lower 128GB tiers while keeping prices steady.
The base iPhone 17 now starts at 256GB of storage for the same $799 price in the U.S. The iPhone Air, iPhone 17 Pro, and iPhone 17 Pro Max variants also begin at 256GB, matching their predecessors’ pricing structures. The Air replaces the iPhone 16 Plus, offering the same $999 price for an equivalent 256GB model. This pricing tactic traces back to 2023, when Apple introduced it with the iPhone 15 Pro Max—charging the same amount but increasing the base storage. The effect is simple: customers who would have opted for a 128GB version must now pay more to enter the lineup.
Samsung adopted a similar approach earlier, upgrading its Plus and Ultra models to 256GB minimum storage in 2023. It often sweetens preorders with double-storage offers—a move that may return for the S26 launch. However, storage and RAM are exactly the components now under the most pressure, thanks to AI firms gobbling up supply to power massive data centers.
Rising Component Costs
ETNews cites market research indicating that LPDDR5 RAM prices for smartphones have jumped by more than 16% compared to early 2025. Samsung’s own semi-annual financial report, released in August, shows mobile chip costs rising 12% over historical averages, with camera modules up 7%. The company plans to use its new Exynos 2600 processor in the Galaxy S26 lineup, alongside the Snapdragon 8 Elite Gen 5 in some markets. These upgraded parts come at a premium.
The current Galaxy S25 lineup is priced at $799.99 for the base model, $999.99 for the Plus, and $1,299.99 for the Ultra. The entry-level S25 still starts with 128GB of storage, but it remains uncertain whether Samsung will follow Apple’s path and lift the baseline to 256GB. Samsung’s last price hike came in 2024, when the Galaxy S24 Ultra rose by $100.
A Broader Market Shift
ETNews also reports that Apple’s future iPhone 18 models may see similar price bumps. Meanwhile, major Chinese brands are adjusting their pricing structures as well. Xiaomi has already raised the cost of its Redmi K90, launched in October, and rivals like Vivo and Oppo are expected to follow suit.
In short, the smartphone market faces upward pricing pressure across the board. As AI accelerates hardware demand, the age of yearly price increases for flagship devices appears to be returning.
