Samsung Hikes Galaxy S26 Ultra Prices Amid Soaring Memory Costs

Samsung is raising the price of the Galaxy S26 Ultra, especially the high-capacity models, due to a sharp increase in memory chip costs.

This price hike is seen as a defensive move to protect profitability, as memory now makes up a much larger portion of the phone's total production cost.

Samsung is adding new AI features, like Perplexity, to justify the higher price, while Apple's strategy of focusing on high-end models creates a competitive environment that allows for this increase.

Samsung appears set to increase the domestic launch price for its upcoming Galaxy S26 Ultra.

Leaked reports suggest a significant price hike, especially for higher-capacity models, with the 1TB version potentially rising by nearly 20%. This news comes just before the official Unpacked event and has caught the attention of many potential buyers.

So, what's driving this decision? The primary cause is an unprecedented supercycle in the memory chip market.

First, the explosive growth in AI has led chipmakers to prioritize high-demand memory like HBM and DDR5. This strategic shift has squeezed the production capacity for the mobile memory (LPDDR5X and NAND) used in smartphones, creating a severe supply shortage.

Second, this supply-demand imbalance has caused memory prices to skyrocket. Market analysis from TrendForce shows that contract prices for smartphone memory in early 2026 are nearly 200% higher than a year ago.

Consequently, memory's share of a phone's total Bill of Materials (BOM)—the list of all parts needed to build it—has jumped from a historical average of 10-15% to a staggering 30-40%. This means the core cost of building a phone has risen dramatically.

From this perspective, Samsung's price increase looks more like a defensive measure to protect its profitability rather than an opportunistic grab for more profit. In fact, the reported price hikes don't even fully cover the estimated increase in production costs for some models.

To soften the blow, Samsung is enhancing the phone's value by integrating a second AI assistant, Perplexity. This move aims to justify the higher Average Selling Price (ASP) by offering more features. The strategy is also shaped by the competition. Apple is expected to focus on a high-priced foldable this year and delay its base iPhone model, giving Samsung more room to adjust its own pricing without facing immediate pressure from its main rival.

Bill of Materials (BOM): A comprehensive list of the raw materials, components, and assemblies required to manufacture a product.
Supercycle: A prolonged period of strong demand and growth that exceeds the usual business cycle, often leading to sharp price increases.
Average Selling Price (ASP): The average price at which a particular product is sold.