Samsung Electronics is set to increase prices on its upcoming foldable smartphone lineup, driven by a global shortage of memory chips caused by the AI boom. This marks a significant shift from the company's traditional pricing strategy.
Galaxy Z Flip8 Price Increase
According to a report by The Korea Herald, leaked pricing from South Korean telecom distribution channels indicates the entry-level Galaxy Z Flip8 will see an approximate 13% price hike over its predecessor. The 256-gigabyte version is expected to cost about 1.68 million won (USD 1,100), a jump of 198,000 won (13.3%) from the Flip7.
Galaxy Z Fold Lineup Changes
The larger Galaxy Z Fold line introduces a structural split. The premium Fold8 Ultra is projected to cost around 2.58 million won (USD 1,842), while a new wider-format Fold8 is expected near 2.28 million won (USD 1,628). Neither has a direct predecessor, making year-on-year comparison complex.
Global Impact
German publication WinFuture reports that the 1-terabyte version of the Fold8 Ultra will see a price hike of EUR 280 (USD 320), bringing its retail price to EUR 2,799 (USD 3,201). The steepest increases are on high-capacity models where memory costs weigh most heavily.
Industry-Wide Effects
The shortage stems from a reallocation of memory manufacturing to AI data centers, making DRAM and NAND flash chips scarce and expensive. This squeeze impacts Samsung in two ways: while the memory chip shortage boosts its semiconductor division, it erodes margins in its mobile phone division. Some analysts believe the smartphone unit may have posted its first quarterly loss.
Samsung is scheduled to unveil the new devices in London on July 22, with a commercial release in South Korea on August 7. Apple has previously raised MacBook and iPad prices by up to USD 300, and several Chinese manufacturers have implemented similar increases.
According to IDC, global smartphone shipments are expected to contract by 12.9% this year, with the decline concentrated at the low end as rising component costs price out cheaper devices.
