[Exclusive] Soaring Component Costs Hit Samsung Hard... 'Galaxy S26' Price Hike Imminent Samsung Electronics is set to raise the domestic factory price of its next-generation flagship smartphone, the 'Galaxy S26' series. This decision comes as cost burdens—such as rising prices for core smartphone components and an entrenched high exchange rate—are rapidly intensifying. As a sense of crisis grows within the Mobile eXperience (MX) Division that it can no longer withstand deteriorating profitability without raising prices, observers predict that a trend of price increases will likely spread across Samsung Electronics' new IT products in general. Galaxy S26 to Rise by Up to 88,000 Won According to industry sources on the 5th, Samsung Electronics has finalized an internal policy to adjust the domestic factory price of the Galaxy S26 series upward compared to its predecessor, the 'Galaxy S25'. It is highly likely that prices will increase by 44,000 won to 88,000 won per model, based on the 256 gigabyte (GB) standard. Considering that last year's Galaxy S25 series factory prices were set at △1.155 million won for the standard model, △1.353 million won for the Plus, and △1.6984 million won for the Ultra, the price of the top-tier Galaxy S26 Ultra is expected to approach 1.8 million won. The Galaxy S26 series will be unveiled for the first time at 'Galaxy Unpacked' in San Francisco, USA, on February 25th, with a release scheduled for March. This marks the first price hike for the Galaxy S series in three years, since 2023. Unlike the 'Galaxy S24', which maintained prices only for the standard and Plus models, the Galaxy S25 froze prices across all products. Despite various cost-increasing factors such as the inclusion of improved components, the company took a gamble to boost sales volume. This strategy succeeded, with the Galaxy S25 recording cumulative domestic sales of 3 million units about two months faster than its predecessor. Deepening Cost Burdens Due to Soaring Memory Prices and High Exchange Rates However, MX Division management has determined that a price hike for this year's successor is inevitable, as the internal and external business environment has worsened further this year. Above all, prices for major components that make up a high proportion of smartphone costs, such as DRAM and NAND flash, continue to skyrocket. The price of 12GB Low Power DRAM 7th Generation (LPDDR5X) modules used in advanced smartphones has more than doubled compared to the beginning of last year. Market research firm Counterpoint Research predicts that smartphone memory prices will rise an additional 40% by the second quarter of this year. As demand for High Bandwidth Memory (HBM) for AI data centers and server DRAM surges, the supply shortage of smartphone DRAM, which has relatively lower profitability, is becoming prolonged. An industry official stated, "It is an unprecedented situation where even Samsung Electronics, which receives DRAM and NAND supplies from its own Semiconductor (DS) Division, is struggling to secure volume." Cost pressure is further increasing due to the unexpected variable of high exchange rates. Recently, the won-dollar exchange rate has been fluctuating in the mid-to-high 1,400 won range, surpassing the 1998 average (1,398.39 won) experienced during the foreign exchange crisis. For components procured from overseas, purchasing costs increase as the exchange rate rises. In the third quarter of last year, Samsung Electronics spent a record high of 10.9275 trillion won on purchasing mobile Application Processors (AP), most of which was used to procure Qualcomm's 'Snapdragon' chipsets. However, Samsung Electronics is considering keeping factory prices in major countries like the U.S. the same as the previous model to promote global sales volume. Accordingly, the U.S. launch prices for the Galaxy S26 are expected to be △$799.99 (approx. 1.15 million won) for the standard, △$999.99 (approx. 1.44 million won) for the Plus, and △$1299.99 (approx. 1.87 million won) for the Ultra, meaning some models will likely be sold at lower prices than in Korea. ...