Samsung Faces Margin Pressure Ahead of Galaxy S26 Launch

Samsung is gearing up to launch its first flagship smartphone lineup of the year, but it is doing so amid increasing margin pressure. The company may debut the Galaxy S26, Galaxy S26+, and Galaxy S26 Ultra on February 25. While excitement is at its peak, rising memory chip costs may shake up the pricing strategy of the upcoming flagships.

Rising memory costs affect Samsung’s mobile business

Samsung’s recent financial results show the growing challenge for its mobile business. In Q4 2025, the company’s Mobile eXperience (MX) and Networks division saw consolidated revenue of KRW 29.3 trillion. Operating profit dropped to KRW 1.9 trillion, down 9.5% from the same period in 2024. As a result, operating margin declined to 6.5% from 8.1 percent (via Koreaherald).

The primary reason for the margin decline is increasing memory prices in recent months. Global prices for DRAM and NAND chips have increased sharply due to higher demand for advanced memory (used in AI infrastructure). Even though Samsung is one of the biggest memory suppliers, its mobile division is struggling with price pressure. “Rising memory prices are an industrywide issue,” said Head of Strategy at Samsung’s MX division Cho Seong-hyuk.

At CES 2026, mobile chief Roh Tae-moon said that smartphone price adjustments may be necessary due to higher semiconductor costs. An industry analyst now says that, even with the Galaxy S26 launch, rising memory costs could limit margin gains in MX.

There is a lot of uncertainty about the pricing of the Galaxy S26 series. While some reports suggest the United States may see flat pricing, other regions, including South Korea, could see price hikes, at least for the Ultra model. According to Newdaily, the Galaxy S26 Ultra could hit store shelves at around KRW 1.8 million. This is about 6% more than the Galaxy S25 Ultra’s launch price of KRW 1.69 million. Surprisingly, some markets, such as Sweden, may see a lower price for the Galaxy S26 Ultra than its predecessor. Things will be clear only when Samsung launches its 2026 flagships.