As Samsung prepares to unveil the Galaxy S26 series in the coming weeks, the South Korean tech giant finds itself navigating a complex pricing dilemma. New reports suggest that internal discussions around the final price tags of the upcoming flagship phones are still unresolved, largely due to rising production costs. At the same time, Samsung is reportedly absorbing losses on every unit of its ultra-premium Galaxy Z TriFold, highlighting the financial pressure the company is currently facing.

According to a report by a popular Korean publication, one of the biggest challenges affecting Galaxy S26 pricing is the steep increase in component costs—particularly memory. A global RAM shortage, driven by the explosive demand for AI-focused hardware, has pushed prices of high-bandwidth memory significantly higher. This has directly increased the manufacturing cost of premium smartphones like the Galaxy S26, making it difficult for Samsung to lock in competitive retail pricing.

If Samsung chooses to keep Galaxy S26 prices in line with the current Galaxy S25 lineup, its profit margins could shrink. On the other hand, raising prices carries its own risk: weaker consumer demand. This concern is amplified by Apple’s recent pricing strategy. In India, Apple effectively lowered the entry cost of its flagship lineup by launching the iPhone 17 with 256GB storage at Rs 82,900, down from the iPhone 16’s Rs 89,900 price for the same storage. Apple also discontinued the 128GB variant, further intensifying competition. For context, the Galaxy S25 currently starts at Rs 80,999 in India, leaving Samsung little room to maneuver.

Another factor adding to Samsung’s cost pressures is its continued dependence on Qualcomm processors. While the company has been working on reintroducing its in-house Exynos chips—specifically the upcoming Exynos 2600—to cut costs in certain regions, the Galaxy S26 series is expected to rely on Qualcomm’s Snapdragon 8 Elite Gen 5 chipset. This limits Samsung’s control over one of the most expensive components in its flagship devices.

Meanwhile, Samsung’s bold push into next-generation foldable technology is also proving costly. The Galaxy Z TriFold, priced at 3,594,000 won (approximately Rs 2.24 lakh), is the most expensive foldable smartphone Samsung has ever released. Despite its eye-watering price, reports indicate that production costs exceed the selling price, meaning Samsung is losing money on every unit sold.

This was indirectly acknowledged by Lim Sung-taek, Vice President at Samsung Electronics Korea, during the device’s launch. He said, "This is a special edition product, so rather than selling it in bulk, we prepared it so that those who want it can try it out." He further explained, “There were various issues, such as the memory price, but we made a grand decision to reduce it and achieve this difficult price."

Rather than focusing on immediate profitability, Samsung appears to be using the Galaxy Z TriFold as a technological showcase. As one of the first smartphone makers after Huawei to launch a triple-folding device, Samsung is prioritising innovation, brand prestige, and long-term learning. Since the TriFold is expected to sell in limited volumes, the overall financial impact remains manageable.

Together, these challenges underline a pivotal moment for Samsung—balancing innovation, competitiveness, and profitability as it enters the next flagship cycle.