Samsung Galaxy S27 Ultra prices may approach $2,000 due to AI costs

Rising component costs driven by the artificial intelligence boom are expected to push flagship smartphone prices to new highs. Reports from the South Korean supply chain suggest that Samsung’s next-generation Galaxy S27 series may see significant price increases. Specifically, the high-end Galaxy S27 Ultra with 1TB of storage could approach the $2,000 mark, up from the $1,799 price point of the previous generation.

The primary drivers for these increases include the high cost of advanced processors required for AI computing and the integration of next-generation LPDDR6 memory, which offers higher bandwidth for on-device AI but at a higher manufacturing cost than current standards.

In markets like Taiwan, these rising costs for new devices are already shifting consumer behavior. Samsung Taiwan has noted a three-fold increase in sales for previous-generation flagship models as consumers seek more affordable alternatives to expensive new releases. Additionally, rising laptop prices are driving some users toward the tablet market, where price increases have been less severe.