Mumbai: Smartphone Prices May Rise Up to 8% in 2026

Tech: South Korean tech giant Samsung is preparing to launch its next flagship Galaxy S26 series, but the company has already hinted at potential price hikes. Roh Tae-moon, Global Co-CEO and Head of Mobile Business at Samsung Electronics, said that the current market conditions are unprecedented, making it difficult to avoid a price increase for Samsung smartphones.

Why Smartphone Prices Could Increase

The main reason behind the price surge is the rising cost of Random Access Memory (RAM). Since October 2025, RAM prices have more than doubled. RAM is a key component used in computers, smartphones, smart TVs, and even medical devices.

The growth of AI-related data centers, which require large amounts of RAM to operate, has created a huge gap between demand and supply. As a result, manufacturers are paying higher costs for components, which will directly affect smartphone prices.

Expected Impact on Smartphone Sales

Counterpoint Research projects a 2.1% decline in global smartphone shipments in 2026 due to rising component costs. Higher production costs are forcing companies to increase retail prices, which could reduce demand, especially for budget models.

• Budget Phones: Models priced under $200 (≈ ₹18,000) will be hit the hardest. Manufacturing costs for these devices have already increased by 20-30% since early 2026, leaving manufacturers little choice but to raise prices. Higher costs may deter budget-conscious buyers, and companies are reportedly delaying new launches in this segment.

• Mid-Range and Premium Phones: Costs for mid-range and premium devices are also rising by 15-20%, primarily due to memory chip shortages and soaring prices. AI-driven demand has limited the production of consumer memory chips, with prices expected to rise another 40% in the second half of 2026. Overall, this could raise smartphone production costs by 8-15%.

Samsung’s Perspective

Before the CES 2026 tech event, Roh Tae-moon confirmed that the rising costs of semiconductors and memory chips will directly impact the pricing of upcoming premium devices. The Galaxy S26 series could become one of Samsung’s most expensive smartphones to date.

• Why Prices Are Increasing: The tech industry is currently facing a memory supply crunch. According to The Korea Herald, the price of general-purpose DRAM (8GB DDR4) jumped from $1.35 to $9.30 in just one year—a nearly sevenfold increase. DRAMeXchange reports that skyrocketing AI infrastructure demand has pushed memory prices to record highs. Roh stated, “We are going through the toughest period of memory pricing, and it will directly impact new phone costs.”

What’s Special About the Galaxy S26 Series

The Galaxy S26 series is more than just a new phone for Samsung—it is a strategic product. Key highlights include:

• Samsung’s in-house 2nm Exynos 2600 chipset.

• Multiple AI-powered features under Galaxy AI.

• Testing Samsung’s vertically integrated model, leveraging its semiconductor and foundry divisions.

Expanding the AI Ecosystem

Samsung is also rapidly growing its Galaxy AI ecosystem. The company aims to increase Galaxy AI-enabled devices from 400 million to 800 million by the end of 2026. Galaxy AI currently runs on Samsung’s in-house tech combined with Google’s Gemini model, powering features like on-device translation and image editing. Internal surveys show AI brand awareness among Galaxy users has increased from 30% to 80%.

Samsung is considering charging for some premium AI features in the future, while core AI functionalities will remain free.