The likelihood of a price increase for upcoming smartphones is growing, with Xiaomi setting a new precedent by raising the price of its flagship Xiaomi 17 Ultra by 10%. The previous model was priced at $924, while the new version will launch at $1,000. This move suggests that Samsung’s Galaxy S26 series is also poised for a price hike, potentially starting between $1,399 and $1,449 if a similar 10% increase is applied. The last price adjustment for Samsung’s flagship Galaxy S series occurred with the Galaxy S23 Ultra in 2023.
The rising costs are largely driven by the rapid expansion of AI data centers, which require significant processing power due to the growing popularity of AI chatbots like Gemini, ChatGPT, Grok, and Meta AI. This demand has led to a shortage of memory chips, including mobile DRAM, as resources are reallocated to meet the needs of these data centers. The situation has become so critical that major memory manufacturers have exited the consumer segment, and companies like Apple are already negotiating with Samsung to secure DRAM supplies for future iPhone models. As a result, other major phone manufacturers, including Apple and Google, are expected to follow suit with price increases.
