Jenith
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Consumer electronics devices are expected to see a major price increase in 2026 largely due to what's going on in the memory market. Prices have skyrocketed, leaving companies with little choice but to pass on some of that impact to consumers.
That's to be expected for smartphones in 2026 as well. Earlier reports had hinted at a potential Galaxy S26 price increase and while it's now believed Samsung may not go through with it, it's running out of options to prevent future hikes.
Samsung recently reported its earnings for the fourth quarter of 2025. The company's record profits were primarily driven by its semiconductor division, and memory chip sales in particular. The operating profit margin for its mobile division actually declined from 8.1% in Q4 2024 to 6.5% in Q4 2025.
This means that the profit Samsung makes on smartphones sold decreased in the previous quarter. Margins were reduced to the astronomical increase in prices for memory chips and other components, thus making it more expensive to produce the devices. Samsung didn't raise prices so the increase ate into its margins.
The goal of every company is to make a profit. There's only so much margin compression that Samsung will withstand before it increases prices. Reports suggest that Samsung will not raise Galaxy S26 prices in key markets such as the United States and Europe.
However, the company may offer little or no pre-order benefits. Samsung may decide to raise prices for its new flagship lineup in other markets, as it has done in the past.
Either way, it's evident that as long as the current situation persists in the memory and component markets, Samsung's running out of options to keep prices constant while also retaining its margins.
The post Samsung’s running out of options to stop a Galaxy S26 price increase appeared first on imeisource.
That's to be expected for smartphones in 2026 as well. Earlier reports had hinted at a potential Galaxy S26 price increase and while it's now believed Samsung may not go through with it, it's running out of options to prevent future hikes.
It may become even more difficult for future devices
Samsung recently reported its earnings for the fourth quarter of 2025. The company's record profits were primarily driven by its semiconductor division, and memory chip sales in particular. The operating profit margin for its mobile division actually declined from 8.1% in Q4 2024 to 6.5% in Q4 2025.
This means that the profit Samsung makes on smartphones sold decreased in the previous quarter. Margins were reduced to the astronomical increase in prices for memory chips and other components, thus making it more expensive to produce the devices. Samsung didn't raise prices so the increase ate into its margins.
The goal of every company is to make a profit. There's only so much margin compression that Samsung will withstand before it increases prices. Reports suggest that Samsung will not raise Galaxy S26 prices in key markets such as the United States and Europe.
However, the company may offer little or no pre-order benefits. Samsung may decide to raise prices for its new flagship lineup in other markets, as it has done in the past.
Either way, it's evident that as long as the current situation persists in the memory and component markets, Samsung's running out of options to keep prices constant while also retaining its margins.
The post Samsung’s running out of options to stop a Galaxy S26 price increase appeared first on imeisource.