Samsung Co-CEO Says Soaring Memory Chip Prices Will 'Inevitably' Impact Smartphone Costs

Samsung's co-CEO TM Roh has warned that product price increases are 'inevitable' as an unprecedented global memory chip shortage squeezes margins across the company's consumer electronics lineup -- from smartphones to televisions and home appliances.

The South Korean giant, one of the top two largest smartphone manufacturers, plans to double the number of mobile devices running its Galaxy AI features to 800 million units this year, up from 400 million at the end of 2025. Galaxy AI is powered by Google's Gemini model and Samsung's own Bixby assistant for different tasks. 'As this situation is unprecedented, no company is immune to its impact,' Roh told Reuters in his first interview since becoming co-CEO in November.

Samsung is working with partners on longer-term strategies to minimize the impact, he said. Market researchers IDC and Counterpoint predict the global smartphone market will shrink this year as the chip shortage threatens to drive up phone prices. The shortage is a boon to Samsung's semiconductor business but pressures margins on its smartphone division, the company's second-largest revenue source.

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