The long-held belief that smartphone prices inevitably decrease over time is being challenged. A perfect storm of surging semiconductor costs and currency exchange pressures has led to an unprecedented trend: price hikes for existing smartphone models months after their initial release.
According to industry insiders, Samsung Electronics implemented price increases on April 2 for select models of its Galaxy S25 Edge, Galaxy Z Fold 7, and Galaxy Z Flip 7 lineups.
The Galaxy S25 Edge 512GB model saw its price jump from 1,639,000 KRW (about 1,088 USD) to 1,749,000 KRW (about 1,161 USD), an increase of 110,000 KRW (about 73 USD). For the Galaxy Z Fold 7, the 512GB variant rose from 2,537,700 KRW (about 1,685 USD) to 2,632,300 KRW (about 1,748 USD), while the 1TB model climbed from 2,933,700 KRW (about 1,948 USD) to 3,127,300 KRW (about 2,077 USD), representing increases of 94,600 KRW (about 63 USD) and 193,600 KRW (about 128 USD), respectively. The Galaxy Z Flip 7’s 512GB model also experienced a price hike, rising from 1,643,400 KRW (about 1,091 USD) to 1,738,000 KRW (about 1,154 USD), a 94,600 KRW (about 62 USD) increase.
This move breaks with industry norms, as smartphone prices typically decrease over time, especially as new models are set to launch. Manufacturers usually lower prices to clear inventory before introducing next-generation devices.
The price adjustments primarily target higher-capacity models, while base 256GB variants remain unchanged. A Samsung spokesperson explained that the dramatic rise in memory semiconductor prices has significantly increased the smartphone component costs. It has been absorbing these expenses internally, but it has reached a tipping point. As a result, it had to adjust prices, focusing on higher-capacity models like the 512GB variants. The representative emphasized that this trend isn’t isolated to Samsung but is affecting the entire electronics industry.
At the heart of these changes lies the soaring cost of memory chips. Market research firm TrendForce projects that general-purpose dynamic random access memory (DRAM) prices could surge by up to 90-95% in the first quarter of 2026 compared to the previous quarter. NAND flash prices are also expected to climb by 55-60%. Analysts attribute this spike to the growing demand from AI applications and data centers, which is creating supply-demand imbalances in the memory market.
The ripple effects of rising component costs are being felt across the tech industry. Sony recently announced price hikes for its PlayStation 5 console lineup, effective April 2. The standard PS5 model jumped from 549 USD to 649 USD, while the Digital Edition increased from 499 USD to 599 USD – both representing 100 USD increases. The PS5 Pro saw an even steeper rise, from 749 USD to 899 USD, a 150 USD jump. Sony cited escalating memory chip prices and overall cost pressures as the driving factors behind these increases.
Market research firms warn that the memory price surge is putting pressure on both costs and demand throughout the smartphone industry.
Omdia forecasts a 7% decline in global smartphone shipments this year. As memory costs climb, they’re taking up a larger share of smartphone production expenses, particularly squeezing the profitability of mid-range devices. The impact is expected to be most severe on budget smartphones priced under 100 USD, with shipments projected to plummet. In contrast, premium devices priced over 800 USD are anticipated to maintain their growth trajectory.
IDC echoes these sentiments, predicting a slowdown in the smartphone market coupled with rising average selling prices. Their projections show a 12.9% drop in global smartphone shipments this year, alongside an increase in average prices. While budget Android manufacturers are likely to face the most significant challenges, premium brands like Samsung and Apple are expected to weather the storm more effectively.
Taken together, these analyses suggest that Samsung’s recent price adjustments for high-capacity models are not an isolated incident. Instead, they reflect a broader industry trend driven by skyrocketing memory prices, which is reshaping the pricing landscape for consumer electronics across the board.