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28 December 2025

Samsung Faces Pricing Dilemma Ahead Of Galaxy S26 Launch

Rising component costs and modest upgrades leave Samsung weighing higher prices for its next flagship phones as a February 2026 launch nears.

As 2025 draws to a close, the annual buzz surrounding Samsung’s next flagship smartphone series is reaching a fever pitch. Tech enthusiasts, industry insiders, and everyday consumers alike are eagerly awaiting the debut of the Galaxy S26 lineup—an event now reportedly delayed until February 2026, according to multiple sources including The Bell and TechRadar. But behind the scenes, Samsung is grappling with a thorny issue that could affect everyone’s wallet: how much will the new phones cost?

Samsung’s pricing conundrum is the result of a perfect storm of rising production costs, intense market competition, and internal strategy shifts. According to a recent report from The Bell, the South Korean tech giant is “struggling to reduce costs,” primarily due to the “continued rise in the price of key components, including semiconductors.” But that’s only part of the story. Labor and marketing expenses have also climbed, and the battle for consumer attention in the premium smartphone market has never been fiercer.

For those keeping score, rumors earlier in the year hinted at radical changes to the S26 lineup. Some speculated that Samsung might scrap the S26+ in favor of a slimmer ‘Edge’ variant, or perhaps rename the base model to ‘Pro.’ However, those rumors have now been put to rest. As confirmed by sources like SammyGuru and Tom’s Guide, Samsung will stick with a familiar trio: the base Galaxy S26, the Galaxy S26+, and the Galaxy S26 Ultra.

The decision to reintroduce the S26+ after considering its removal has reportedly contributed to a slight delay in the series’ launch, now expected in February 2026. This delay, as noted by The Bell, is also tied to the company’s ongoing uncertainty over pricing. After all, with the Galaxy Z TriFold—a recent foldable device—Samsung took the unusual step of selling at a loss in its home market, a move that industry observers say was meant to demonstrate the viability of triple-folding technology. But as Tom’s Guide points out, Samsung “cannot afford to compromise profitability with the S26 series like it is doing with the Galaxy Z TriFold.”

The stakes are high. The Galaxy S series is a major revenue driver for Samsung’s mobile division, and selling these flagship phones at a loss is simply not an option. Yet, the company faces a dilemma: raise prices to protect margins and risk alienating customers, or hold the line on pricing and see profits erode. “While raising the selling price might guarantee a certain level of margin, it would increase the burden on consumers and potentially reduce sales,” notes The Bell. “However, maintaining the same price as the previous model would inevitably lead to a decline in profitability.”

So, what’s fueling these cost increases? One major culprit is the skyrocketing price of memory, especially RAM. The Bell reports that demand for memory among AI companies has shifted production priorities, creating shortages and driving up costs for smartphone makers. As a result, the very RAM that powers today’s phones is in shorter supply—and more expensive—than ever. This squeeze is already being felt: the Galaxy Z TriFold, for example, reportedly costs around 3.5 million won to produce in South Korea, more than its retail price.

Component costs aren’t the only factor at play. Samsung’s decision to use its own Exynos 2600 chip in some S26 models—rather than relying solely on Qualcomm’s Snapdragon 8 Elite Gen 5—is a calculated move to manage expenses. According to TechRadar, “Using Exynos processors in selected models should help to reduce costs to a certain extent,” echoing a strategy the company used with its Galaxy Z Fold 7 and Z Flip 7 devices earlier this year.

But will these behind-the-scenes changes translate into tangible improvements for consumers? The answer appears to be: somewhat. The Galaxy S26 series is expected to introduce several notable, if not revolutionary, upgrades. Among the most significant is the inclusion of the new Samsung Exynos Modem 5410, which promises “faster connectivity across the board, and crucially, better satellite connectivity,” according to TechRadar. This could mark the first time Samsung’s flagships offer full satellite capabilities, closing the gap with rivals like Apple’s iPhones and Google’s Pixels.

Mobile gaming enthusiasts have reason to celebrate as well. Reports from The Elec indicate that the S26 series will feature an improved AMD GPU on the Exynos 2600 chip, delivering smoother and more immersive gaming experiences. Other expected enhancements include full adoption of Qi2 wireless charging and a new camera sensor designed to improve low-light photography. While these are welcome tweaks, Tom’s Guide notes that they “aren’t the sort that get people excited about paying more for their phone.”

For context, last year’s Galaxy S25 lineup started at $799 for the base model, with the Plus and Ultra versions priced at $999 and $1,299, respectively. The Ultra, in fact, is already one of the most expensive non-folding smartphones on the market, outpacing even Apple’s iPhone 17 Pro Max by $100. With the S26 series, Samsung faces a tough choice: “Either Samsung is going to have to take a cut in profitability, or we’re going to have to pay more,” as TechRadar succinctly puts it.

As of now, potential buyers should brace themselves for a likely price increase, though the exact figures remain under wraps. Industry watchers expect more clarity as the February launch date approaches. In the meantime, the company’s internal debate continues, balancing consumer expectations against the harsh realities of rising costs and shrinking margins.

Despite the uncertainty, one thing is clear: Samsung is determined not to repeat the loss-making strategy it employed with the Galaxy Z TriFold. The S26 series, with its blend of incremental upgrades and familiar design, will test whether consumers are willing to pay a little more for the latest and greatest—or whether they’ll opt for discounted models from previous years.

As the smartphone market heads into 2026, all eyes are on Samsung. The company’s next move will not only set the tone for its own fortunes but could also ripple across the entire industry. Stay tuned—this is one launch where the price tag might be the biggest headline of all.