Samsung Electronics on Wednesday unveiled its latest series of flagship smartphones, two of which cost $100 more than their predecessors as the industry looks to recover from a global memory chip shortage.
Samsung is touting improved AI and privacy displays in new models against the backdrop of an industry-wide memory chip shortage brought on by the rapid expansion of AI infrastructure.
Counterpoint Research said in a December note that the average selling price of smartphones is expected to rise 6.9% in 2026 due to memory shortages.
The starting price of the top model S26 Ultra remains unchanged compared to last year’s S25 series. The S26 and S26+ are $100 more expensive than their predecessor, the S25.
Galaxy S26: $899Galaxy S26+: $1,099Galaxy S26 Ultra: $1,299
Ben Wood, principal analyst at CSS Insight, told CNBC that the chip shortage is “not a short-term issue.”
“We expect the global memory chip shortage to continue until 2027, primarily because the rapid expansion of AI infrastructure is diverting supply away from smartphones, PCs and other consumer electronics,” he added.
New specifications
The S26 series is Samsung’s third AI phone, following the release of the S24 two years ago. The company says the new model’s processing chips are faster than previous generation chips. It added that it uses AI tools to assist with things like photo editing and document scanning.
Samsung’s S26 series is a “positive step” in making AI features more accessible to consumers, Wood said. But, he added, “I’m concerned that at this point, consumers will still have questions about how much value it actually provides.”
Wood added that the S26 Ultra’s “standout feature” is the privacy display. This controls how the pixels distribute light and limits what a side viewer can see. According to the company, this feature is the first in the world.
memory loss
According to CSS Insight research, memory prices in areas such as smartphones have doubled in the past two quarters, Wood said.
Although memory makers are investing in new capacity, the chip shortage is expected to last until 2027 or early 2028, he added.
“The rising price of memory semiconductors is a global issue, impacting a wide range of industries around the world,” a Samsung spokesperson told CNBC.
“Through our strategic partnership, Samsung is expected to be in a relatively advantageous position on the supply side, and we will continue to strive to minimize the impact on our business by responding flexibly to market changes.”
Paolo Pescatore, TMT analyst at PP Foresight, told CNBC that smartphone makers are looking at ways to reduce the risk of running out of memory by diversifying their suppliers. He added that memory scarcity is no longer a “niche supply chain topic” but a “strategic constraint on AI roadmaps.”
“If memory costs remain high, Samsung faces a familiar dilemma: protect margins or protect volume,” Pescatore said.
