Samsung Faces Pricing Pressure Ahead of Galaxy S26 Launch Amid Rising Memory Costs
Samsung Electronics is facing pricing pressure for its upcoming Galaxy S26 series due to rising memory costs, which have led to a decline in profitability within its mobile division. In Q4 2025, the division reported a revenue of 29.3 trillion won and an operating profit decrease of 9.5% year-over-year, while Apple achieved record revenue and maintained a higher operating margin. To address these challenges, Samsung plans to emphasize premium sales and integrate AI features into its products.
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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.
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