Samsung Expands Premium Lineup
Rising Component Costs... Securing Profitability
Samsung Electronics plans to allocate over 70% of its next-generation flagship smartphone series, the Galaxy S27, to its highest-tier models: the Ultra and the newly introduced Pro. This strategic shift aims to counter profitability challenges caused by rising component costs by prioritizing high-value, premium-tier production.
According to industry sources on the 9th, Samsung has set the shipment ratio of the premium models—Ultra and Pro—in the Galaxy S27 series to approximately 70% of total production.
Samsung typically mass-produces around 35 million units annually for its Galaxy S series, with the Galaxy S26 series following a similar scale this year. Among these, the top-tier Ultra model accounted for about 50% of production, or roughly 18 million units.
For the upcoming S27 series, total production is expected to remain comparable. While maintaining the Ultra model at a similar 18 million units, Samsung plans to produce the Pro model at 7-8 million units. Consequently, the combined premium lineup (Pro + Ultra) is projected to exceed 70% of total production.
The new S27 Pro, smaller than the Ultra and lacking a “pen input” feature but otherwise matching its high-end specifications, will join the premium tier. Samsung is restructuring its lineup, categorizing “Basic” and “Plus” as standard models, while elevating Pro and Ultra as premium tiers—expanding the premium segment from one to two models.
Maintaining Ultra supply while allocating 20% share to Pro is a strategy to absorb demand for non-Ultra Standard and Plus models into the high-performance premium segment through the Pro. The intention is to concentrate product cannibalization (cannibalization) within the Galaxy S27 Series between Pro and Ultra, thereby increasing sales of high-value models.
Earlier, Samsung Electronics' MX Division reduced shipments of the Galaxy A Series, an entry-level smartphone, by 20% in the fourth quarter. This was to cut production of less profitable products. Reorganizing the Galaxy S Series lineup to focus on premium models and increasing their proportion aligns with this approach. (See page 1, October 26th edition of this paper.)
Behind this are rising prices of key smartphone components, including a sharp increase in memory semiconductor prices (chipflation). As cost burdens grow due to higher unit prices of major semiconductor components, strengthening premium product lineups—with higher unit prices and superior profitability—has become urgent, rather than simply expanding volume.
An industry insider stated, “Samsung is fully focused on raising average selling prices and securing profitability through lineup reorganization,” and added, “The focus on Pro and Ultra in the Galaxy S27 Series will be a key strategy to maintain leadership in the global flagship smartphone market.”
