Six years ago, Samsung made a splash with the Galaxy Fold, a device that many believed would revolutionize the smartphone industry. Its innovative design promised a wave of foldable gadgets, but reality told a different story. Instead of dropping prices, manufacturing costs have climbed, slowing market penetration. However, Samsung’s mobile chief, TM Roh, remains unfazed by shipment figures, even expressing comfort with the company taking a financial hit on the new foldable models as long as long-term goals are met.
In major markets, the latest foldables haven’t seen a significant price increase, reflecting Samsung’s priority on boosting shipments over immediate profits. Analysts previously anticipated a 20% price hike for the Galaxy Z Fold 7 and Galaxy Z Flip 7, but the company only implemented a modest increase. According to The Korea Herald, this choice was intentional. TM Roh explained that despite noteworthy advancements pushing up production costs, Samsung decided to absorb these expenses to foster the expansion of foldable phones and democratize AI experiences.
Considering geopolitical tensions and global inflation, it’s clear that producing the new foldables is more expensive. The incorporation of high-end chipsets like Qualcomm’s Snapdragon 8 Elite and Exynos 2500 contributes to this. Still, Samsung is holding the line on pricing. An industry source pointed out that a potential reason for not hiking prices might be the 21% sales drop of the Galaxy Z Flip 6 last year.
Meanwhile, Huawei is leading the foldable market in China, particularly after launching the Mate XT, the world’s first commercial tri-fold smartphone. Despite challenges like U.S. export controls, Huawei’s move has put pressure on Samsung. The Korean company appears to be strategizing aggressively, keeping prices competitive in China, the largest smartphone market by volume.
Samsung is also eyeing its own tri-fold device, potentially named the Galaxy G Fold, which is rumored for a fourth-quarter reveal. Although production is reportedly limited this September, the launch might serve as a market test to gauge consumer interest.
