Samsung Electronics Co. is weighing a significant price increase for its upcoming Galaxy S26 smartphones due to a critical global shortage of memory chips. This urgent development comes as supplies of DRAM—an essential component in smartphones—tighten sharply, driven by major producers like Samsung and SK Hynix Inc. redirecting their resources towards high-bandwidth memory (HBM) chips for artificial intelligence applications.
According to the latest data from research firm TrendForce, the fourth-quarter prices for DRAM are set to surge dramatically. Mobile DRAM prices, a crucial factor for the Galaxy S26, are now projected to rise between 38% and 43%. This marks a significant revision from earlier estimates of just 18% to 23% for LPDDR4, which is typically used in mid-range smartphones, and 20% to 25% for LPDDR5, embedded in high-end models.
The situation has escalated to a point where some chip suppliers have stopped providing price quotes altogether, overwhelmed by a flood of orders from smartphone manufacturers racing to secure long-term supplies ahead of their product launches in early 2026.
TrendForce has also adjusted its forecasts for other segments, anticipating a 28% to 33% increase in server DRAM prices and a 25% to 30% hike for PC DRAM, all due to the same supply constraints. This latest round of price hikes reflects the second upward revision of the quarter, an unusual move highlighting the severity of the ongoing chip crisis.
The implications extend beyond just pricing; consumers may face a more challenging market as manufacturers like Apple scramble to lock in supplies, stretching contracts through 2027. With the smartphone industry gearing up for new launches, the impact of these changes could ripple through the market, affecting availability and pricing strategies for consumers worldwide.
As Samsung prepares for the release of the Galaxy S26, the potential price increase could have significant ramifications for both the company and its customers. The urgency for consumers to stay informed is paramount as the situation develops. Keep an eye on this evolving story, as the landscape for smartphone pricing continues to shift dramatically.
