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Samsung Electronics is experiencing increased pricing pressure for its Galaxy S26 series due to rising memory costs affecting its mobile division's profitability. In Q4 2025, Samsung's Mobile eXperience and Networks division reported revenue of 29.3 trillion won ($20.1 billion) and an operating profit of 1.9 trillion won, reflecting a 9.5% decrease from the previous year and a decline in operating margin to 6.5%.

This margin compression is attributed to a global rise in DRAM and NAND prices driven by AI infrastructure investments. In contrast, Apple reported record revenue of $143.8 billion in the same quarter, with a 35.4% operating margin.

Analysts suggest that while Samsung may need to adjust its smartphone pricing, Apple is likely to maintain iPhone prices due to its robust services revenue and strategic margin management. Samsung plans to focus on premium sales and AI features to navigate these challenges.