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Samsung executives have raised the alarm over rising memory costs, warning that the squeeze could force smartphone price adjustments. The message, delivered at CES 2026, underscores how shortages in memory chips are rippling across the consumer electronics market.
Memory crunch at CES: executives signal possible price moves
At CES 2026, TM Roh, co-CEO of Samsung's mobile division, told reporters: "We're facing one of the harshest pricing situations in memory" and cautioned that "smartphone price adjustments may be necessary." The company is coordinating with partners across its supply chain to mitigate long-term effects as memory scarcity hits not only phones but also TVs and smart home devices.
Wonjin Lee, Samsung's global head of marketing, told Bloomberg the company is considering a "repricing" strategy to align device prices with the new cost reality. Lee's interview touched on memory prices, the future of TVs, and the role of AI in driving demand.
What devices are affected — and why timing matters
The memory shortage is broad: smartphones, TVs, and connected appliances are all feeling the pinch. Samsung's semiconductor arm, the largest chip maker in 2024, ceded the memory crown to SK Hynix in 2025, and the mobile division is now struggling to source memory at favorable prices.
- Smartphones: increased component costs could push retail prices higher.
- TVs and set-top devices: higher memory bills may alter margins.
- Smart appliances: AI features often require larger memory footprints.
That situation complicates Samsung's product calendar. The Galaxy S26 launch is a high-stakes moment: Apple has already reclaimed the top position in global smartphone shipments with its iPhone 17 series performing strongly. To avoid losing momentum, Samsung is reportedly weighing a selective price freeze for the S26 in certain markets even as it contemplates broader repricing.
AI demand is fueling the memory boom — and shaping Samsung's strategy
Ironically, the rush to add AI features to devices is one reason memory prices are surging. Samsung says awareness of Galaxy AI among its users climbed from 30% to 80% in a single year, and the company plans to ship 400 million new AI-capable devices this year — doubling the installed base of Galaxy AI products.
That projection shows Samsung is betting on AI to drive future growth, even if it means short-term cost pressures. The company now faces a balancing act: maintain competitive device pricing at a sensitive moment in the market while absorbing or passing on higher component costs.
For consumers and industry watchers, the key questions will be whether Samsung can stabilize memory supply and how it chooses to price flagship devices like the S26 in the coming months.
Source: gsmarena
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