Global smartphone shipments are set to shrink sharply in 2026 as soaring memory and core component prices hit the market, but Samsung Electronics is moving in the opposite direction. Rather than passing costs fully on to consumers like some rivals, Samsung plans to keep shipment volume steady through the Galaxy S26, Galaxy Z Fold 8, and Galaxy A series, and could even retake the No. 1 spot in global smartphone shipments.<\/p>\n
According to reports from DealSite and ET News, Counterpoint Research recently forecast that global smartphone shipments will fall 14.3% in 2026, mainly due to higher costs for mobile memory and chipsets. Samsung, by contrast, could grow 0.8%, lifting its full-year market share to about 22.6%, slightly above Apple’s 22.5%.<\/p>\n
Memory up 211%, phones up just 7%<\/p>\n
Samsung is not getting a meaningful “friend price” simply because it makes its own DRAM and NAND Flash. The price of mobile memory purchased by the Device eXperience (DX) division in the first half of 2026 jumped 211% from the 2025 full-year average, while the average selling price of memory in the Device Solutions (DS) division rose about 220% over the same period. That shows that the real vertical-integration advantage for Samsung’s Mobile eXperience (MX) business is no longer significantly cheaper chips, but a relatively stable supply when the market is tight.<\/p>\n
Other component costs also rose, with mobile APs and camera modules up about 6% and 5%, respectively. By comparison, Samsung’s average selling prices (ASPs) for its smartphones in the first half of 2026 increased only about 7% from the 2025 full-year average, while some Galaxy S26 models in South Korea rose as much as 8.6%, far below the jump in memory costs.<\/p>\n
The gap between prices and costs has already hit earnings. Samsung MX and the network business posted revenue of about KRW33.2 trillion (US$24.0 billion) in the second quarter of 2026, along with a loss of about KRW700 billion.<\/p>\n
Galaxy series powers the volume fight<\/p>\n
One reason Samsung is unwilling to raise prices aggressively is that the Galaxy A series remains key to maintaining global shipment scale. Counterpoint data show that among the world’s top 10 best-selling smartphones in the third quarter of 2025, Samsung held five spots, all from the Galaxy A series, underscoring the importance of mid- and low-end models to emerging markets, carrier channels, and overall market share.<\/p>\n
Samsung’s current product strategy can therefore be seen as running on two tracks: the Galaxy S and Z series defend the premium market and brand value, while the Galaxy A series protects shipment volume and market share.<\/p>\n
Samsung DX chief Roh Tae-moon recently told employees that expanding market share will be one of the company’s key operating strategies in the second half of the year. As other brands face component-cost pressure and are forced to raise prices or cut back on lower-priced models, Samsung wants to use its full product lineup, global channels, and relatively stable component supply to capture the market space left behind.<\/p>\n
Betting on the next up-cycle<\/p>\n
Counterpoint expects Apple’s shipments to fall 2.1% in 2026, while Chinese brands including Honor, Oppo, Vivo, Xiaomi, and Transsion could decline by about 15% to 34%. Huawei is one of the few exceptions, with growth projected at about 8%. That leaves the smartphone market in an unusual position: competitors are shrinking volume to protect margins, while Samsung is willing to sacrifice some profit in order to grow scale.<\/p>\n
The cost of that strategy is already clear, with MX even slipping into a quarterly loss. But Samsung is betting on a longer-term market position. If memory supply tightness gradually eases after the second half of 2027 and component costs normalize, the Galaxy users, channels, and market share it protects today at a lower price increase could later be converted back into profit.<\/p>\n
Samsung is fighting an anti-cycle war. In this round of vertical integration, the real advantage is no longer cheaper in-house chips, but the ability to keep shipping and push forward when rivals are forced back by shortages and high prices. If the strategy works, the market share MX gives up in margin this year could become leverage for the next smartphone upturn.<\/p>\n
\n Article
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