Apple’s Pricing Strategy Upends Samsung’s Plans
In a surprising move, Apple has opted not to raise the base price of the iPhone 17 this year, retaining it at $799 despite widespread inflation and an escalation in component costs.
This strategy, coupled with enhancements to features and a doubling of base storage, has placed Samsung in a precarious position concerning its Galaxy S26’s pricing structure.
A report from Korea’s Newspim indicates that Samsung’s initial design revisions aimed to produce a sleeker Galaxy S26, achieving a thickness of just 6.9mm, 0.3mm slimmer than its predecessor, the S25. Additionally, the company had intended to upgrade the battery capacity from 4,000mAh to a robust 4,900mAh.
However, the lack of a price increase for the iPhone 17 has compelled Samsung to reassess its strategy regarding the S26’s base price.
The entry-level iPhone 17 has proven to be a significant success, generating substantial global demand, with lead times stretching close to a month, even weeks after its debut.
As a result, Samsung is reportedly revisiting its plans to ensure competitive pricing, even though design finalizations are nearing completion, as indicated by an unnamed Samsung Electronics official.
The company seems constrained from elevating the S26’s price beyond the existing $799 MSRP for the iPhone 17 and the S25.
Holding the Price Steady Will Come at a Cost
In an effort to mitigate manufacturing expenses, Samsung has seemingly decided to maintain the Galaxy S26’s thickness while curtailing the battery enhancement to 4,300mAh. Moreover, other significant improvements, such as a transition to a 50MP ultrawide camera, have been postponed.
This strategic retention of price at $799 poses considerable challenges for Samsung, given the surging costs of components. The prices for NAND and storage have seen a sharp uptick, with Qualcomm’s latest flagship chip anticipated to exceed the costs associated with the Snapdragon 8 Elite.
Consequently, reports suggest that Samsung will incorporate its proprietary Exynos 2600 processor in the Galaxy S26 and its Plus variants within select regions, including Europe and Asia.
The focus appears to be on maintaining competitive pricing for the base Galaxy S26, while the S26 Plus aims to strike a harmonious balance between cost and features. The Galaxy S26 Ultra is expected to retain its premium allure.
Additions to this narrative include a decision for the S26 Plus to maintain both its thickness and battery capacity, akin to the S25 Plus, while the S26 Ultra will enjoy a slight reduction in thickness by 0.3mm.
These last-minute design alterations are likely responsible for Samsung’s postponement of the Galaxy S26 series launch to late February of next year, marking a departure from its traditional timeline.
Source link: Androidpolice.com.
