Samsung unveils wider foldable phone, raises prices as chip costs rise

• The new Galaxy Z Fold8 is priced at $1,899, while the premium Fold8 Ultra and clamshell Flip8 cost $2,099 and $1,199 respectively, marking $100 increases from previous models
• Memory and storage account for over 60% of material costs in budget smartphones and more than 30% in premium models, driving the price increases as chip costs surge
• Apple is expected to launch its first foldable phone this year with a screen similar to an iPad mini, threatening Samsung's dominance in the foldable category it pioneered

Samsung Unveils New Foldables with Price Increases Amid Rising Chip Costs

Samsung Electronics launched three new Galaxy Z foldable smartphones on Wednesday, July 22, marking prices up by $100 across updated models as the company faces pressure from rising memory chip costs and impending competition from Apple.

Key Product Details:

• Galaxy Z Fold8 (passport-sized): $1,899, featuring a wider screen targeting video-heavy users
• Galaxy Z Fold8 Ultra: $2,099 (up $100 from predecessor)
• Galaxy Z Flip8 (clamshell-style): $1,199 (up $100 from predecessor)
• All models powered by Alphabet's Gemini AI

Market Dynamics:

Samsung pioneered foldable smartphones but faces its most significant competitive threat yet. Apple is expected to launch its first foldable device this year with a screen comparable to an iPad mini. IDC Vice President Francisco Jeronimo called this "one of Samsung's most important foldable launches," emphasizing the company must defend the category it created.

Financial Pressures:

Rising memory chip prices are squeezing Samsung's mobile division margins, with some analysts projecting the unit's first-ever quarterly loss for April-June. Memory and storage components account for over 60% of material costs in budget smartphones and more than 30% in premium models, according to Omdia data.

While surging chip prices hurt Samsung's mobile business, they benefit its semiconductor division, which is experiencing record-high margins. The Fold8 and Fold8 Ultra utilize Qualcomm's latest processors, while the Flip8 uses either Qualcomm or Samsung's Exynos chips depending on the market.

Analysts question whether expanded screens alone justify the premium pricing in an increasingly competitive landscape.