[Edaily Reporter Shin Young-bin] #Samsung Electronics’ entry-level Galaxy A series smartphones are also expected to face pressure to raise prices. There are predictions that the European launch price of the upcoming Galaxy A27 could rise by nearly 20% compared to its predecessor.

According to IT tipster Roland Quandt on the 11th, the European launch price for the Samsung Galaxy A27 is likely to be set at 349 euros (approximately 613,000 won) for the base model and 439 euros (approximately 771,000 won) for the higher-end model. The base model is reported to feature 6GB of RAM and 128GB of storage, while the higher-end model is said to come with 8GB of RAM and 256GB of storage.

Compared to its predecessor, the Galaxy A26, the price increase is approximately 17% and 19%, respectively. The Galaxy A26 was launched in the European market at 299 euros (approximately 526,000 KRW) for the 6GB RAM/128GB model and 369 euros (approximately 649,000 KRW) for the 8GB RAM/256GB model.

The hardware upgrades are expected to be minimal relative to the price increase. The Galaxy A27 is reported to feature a Qualcomm Snapdragon 6 Gen 3 chipset, a 6.7-inch FHD+ display, a 50-megapixel main camera with optical image stabilization (OIS), a 5,000mAh battery, and 25W wired charging.

Even entry-level smartphones appear to be feeling the impact of recent memory price hikes and supply chain cost pressures. DRAM and NAND flash prices are rising as increased demand for generative AI servers coincides with a shortage of high-performance memory. For smartphone manufacturers, this inevitably leads to higher costs for RAM and storage components.

This price hike is not unique to Samsung Electronics. Foreign media reported that other manufacturers, such as Motorola, have also raised prices on some of their entry-level models this year. While entry-level smartphones have traditionally been known for offering basic performance at a price point of around $300, analysts suggest that this price range itself is becoming unstable due to the ongoing rise in memory and component costs.

Price hikes for mid-to-low-end phones could directly translate into a burden for consumers. With premium phone prices already well over 1 million won, entry-level models have served as an alternative for price-sensitive consumers. However, if prices rise even for highly popular models like the Galaxy A series, the smartphone replacement cycle is likely to lengthen further.

The industry expects the polarization of smartphone prices to become even more pronounced this year. Premium phones will continue their high-price strategy by emphasizing artificial intelligence (AI) features, high-performance chips, and cameras, while entry-level phones are finding it increasingly difficult to maintain their prices due to rising costs. Even in the entry-level market, where low prices are the main selling point, manufacturers’ cost management and pricing strategies are expected to emerge as key variables.