Key facts
- Samsung Electronics launched the Galaxy Z Fold8, Galaxy Z Fold8 Ultra, and Flip8 foldable phones.
- The Galaxy Z Fold8 features a wider screen and is priced at $1,899.
- The Galaxy Z Fold8 Ultra and Flip8 saw price increases of $100, costing $2,099 and $1,199 respectively.
- The new foldable models are powered by Alphabet's Gemini AI.
- Rising memory chip prices are impacting Samsung's mobile division profitability.
Samsung Electronics has launched its latest generation of foldable smartphones, including a new passport-sized Galaxy Z Fold8, while simultaneously increasing prices for two of its updated foldable models. The company is navigating a challenging market environment characterized by rising memory chip costs and the anticipation of new competition, notably from Apple, which analysts expect to enter the foldable segment this year.
The new Galaxy Z Fold8, designed with video-heavy users in mind, is priced at $1,899. The premium Galaxy Z Fold8 Ultra and the clamshell-style Flip8 have each seen a $100 price hike from their predecessors, now costing $2,099 and $1,199 respectively. These devices are powered by Alphabet's Gemini artificial intelligence.
Analysts suggest that Samsung's mobile division may report its first quarterly loss in April-June due to the squeeze on profit margins from escalating chip prices, even as Samsung's semiconductor business experiences record-high margins. Data from Omdia indicates that memory and storage constitute a significant portion of material costs in smartphones, though premium models offer more flexibility to absorb price increases.
Despite these challenges, IDC forecasts that Samsung's global smartphone market share could increase by 2026, even as the overall market is expected to contract by a record 14%. The foldable segment, however, is predicted to grow by 20% during the same period. Analysts note that a larger screen alone may no longer be sufficient justification for premium pricing in the foldable market.