Samsung raises foldable phone prices with Galaxy Z8 launch

Samsung introduced three new foldable smartphones on Wednesday, pricing its top Galaxy Z Fold8 Ultra at $2,099 as component costs put pressure on premium devices. The launch extends Samsung’s push to defend a category it helped establish before Apple’s widely expected entry into foldable phones later this year, according to reports cited by CNBC.

The South Korean technology group unveiled the Galaxy Z8 Series at its Unpacked event in London. The lineup comprises the Galaxy Z Fold8 Ultra at $2,099, the Galaxy Z Fold8 at $1,899 and the Galaxy Z Flip8 at $1,199.

The new pricing marks a $100 increase for the Fold8 Ultra compared with the equivalent Galaxy Z Fold7, CNBC reported. The Galaxy Z Flip8 is also $100 more expensive than the Z Flip7.

Higher memory costs feed into handset pricing

CNBC attributed the higher prices chiefly to rising component costs, especially memory chips. Those chips are used in smartphones, while demand from artificial intelligence infrastructure has tightened supply and pushed prices higher across parts of the electronics industry.

For device makers, higher component costs can either compress margins or be passed on to customers through higher retail prices. Samsung’s increases suggest some of that pressure is reaching consumers, although Ben Wood, chief analyst and chief marketing officer at CCS Insight, told CNBC he had expected a larger rise.

Wood said the relatively contained increase indicated Samsung wanted to preserve a competitive price point. He also said the more than $2,000 price of the Fold8 Ultra would draw attention in the market.

Samsung broadens the Fold range

Samsung’s foldable lineup has typically centred on two designs: the Fold, which opens like a book, and the Flip, which uses a clamshell format similar to older flip phones. The latest launch adds a three-device structure, with the Ultra positioned as the highest-specification model in the series.

The Galaxy Z Fold8 is a new form factor within Samsung’s Fold portfolio. It also opens like a book but is smaller than the Fold8 Ultra. Samsung said the device uses a 4:3 screen ratio intended to improve viewing for content.

Wood told CNBC that a wider foldable design had been expected because Apple has been rumoured to be preparing a wide-screen foldable iPhone. He said Samsung and other manufacturers were seeking to move ahead of that potential launch.

The Galaxy Z Fold8 Ultra and Galaxy Z Fold8 both run on Qualcomm’s Snapdragon 8 Elite Gen 5 processor. Samsung is differentiating the Ultra with a more advanced three-lens camera system and a larger battery, according to CNBC.

The $200 gap between the Fold8 and the Fold8 Ultra leaves Samsung with a product-positioning challenge at the premium end of the market. Wood told CNBC that the lower specification of the Fold8 means Samsung will need a clear sales proposition for customers weighing it against the Ultra model.

Samsung released its first foldable smartphone in 2019 and has been the dominant manufacturer in the segment, CNBC reported. Apple has not yet launched a foldable iPhone, but reports cited by CNBC indicate the company is expected to introduce its first model this year, bringing a larger competitor into a market Samsung has led for several years.

This story draws on original reporting from CNBC.