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Why Your Next iPhone or Galaxy Phone Might Cost More

With just two days to go before Samsung officially unveils its Galaxy S8 smartphone, the rumors have piled up about expected cool new features including a larger edge-to-edge screen and gigabit-download speed capability.

But one leak that didn’t get as much as attention was about the price. After Apple last year raised the price of its iPhone 7 Plus model by $30, reports now suggest that there will be a $100 across-the-board hike for the S8, at least in some markets. And Apple’s upcoming top-end model expected this fall, which is also expected to feature a larger edge-to-edge screen, may cost over $1,000.

At a time when growth in the smartphone market has slowed–and mobile carriers are less likely than ever to subsidize phone purchases–the price hikes seem more than a bit counterintuitive. But it’s just the sort of strategy that makes sense when a market matures, as phone makers seek to extract the maximum revenue from every customer. And the hikes come as manufacturers face the competing market realities of needing to offer more storage memory to keep customers happy while memory chip prices are rising.

Some analysts think the new Samsung pricing, reported initially by Evan Blass of VentureBeat, could indicate Samsung will copy Apple’s strategy of selling older models at lower prices. The new Galaxy S8 will sell for 799 euros, a 100 euro price hike and an expected larger screen model will sell for 899 euros, Blass reported. Samsung typically sells the phones for the same number of dollars in the United States, so that would equate to $799 and $899, as opposed to exactly equivalent prices suggested by current exchange of $871 and $980. If the rumors are correct, the current Galaxy S7 could sell for $699 or less.

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Samsung could also make up for the hike by bundling more free accessories. Last year, it gave away millions of its Gear VR headsets for virtual reality to Galaxy S7 buyers. “Samsung could also start higher and bundle some accessories at launch to raise the value proposition in select markets, so that price increase will average out,” says Neil Shah, an analyst at Counterpoint Research.

Shah also mentioned Samsung’s disastrous losses last year from the exploding batteries in Galaxy Note 7 phones as a possible rationale for raising prices. “Maybe Samsung wants to compensate a bit with a bit higher pricing,” he says.

The possible price hike carries tremendous risk for Samsung, analyst Jan Dawson at Jackdaw Research warns. “Just because Apple is able to raise prices and still get lots of sales doesn’t mean everyone else can,” he says. “Samsung had better introduce some really impressive technology if it expects people to pay $100 more.”

Fortune asked Samsung for comment and will update this story if a response is received.

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Apple (AAPL) has long sought to explore how far upscale it can take prices. The iPad line, which was originally introduced in 2010 at prices from $499 to $829, now ranges from $329 to as much as $1,129. The company’s new line of MacBook Pro laptops with a touch screen in the keyboard started at $200 more than the prior generation and reached a top price of $4,299.

Related: Apple Rumor Roundup

According to the latest rumors, mostly emanating from sources in Apple’s Asian supply chain, the company will offer three new models this year. Two will closely resemble the current 7 and 7 Plus models while a third, which outsiders have dubbed the 10th anniversary edition or the iPhone 8, apparently will feature a radical new design. The flagship is expected to include an edge-to-edge 5.8-inch screen using a brighter OLED display and offer wireless charging. The new screen technology is more expensive, in part prompting a higher price.

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