Samsung’s Mobile Chief Hints That He Is Willing To Lose Money On The Latest Foldable Smartphones If It Means Expanding Shipments And ‘Democratize AI Experiences’ For The Masses
It has been six years since Samsung introduced the Galaxy Fold, and at the time, the unique form factor, which delivered a ton of utility, suggested that these devices would take over the industry. Unfortunately, whoever made those assumptions have been proven incorrect, and instead of controlling the prices of these foldable smartphones, manufacturing costs have soared and market penetration has dampened. Thankfully, Samsung’s mobile head, TM Roh, is not worried about the lack of shipments, with his latest statement suggesting that the executive is comfortable losing money on the new foldable flagships, as long as his goals are accomplished.
The lack of a price hike on Samsung’s latest foldable smartphones in major markets hints that the company is more concerned about increasing the shipment tally rather than losing money on each unit sold
In some markets, Sammobile reports that analysts estimated a 20 percent price hike for Samsung’s Galaxy Z Fold 7 and the Galaxy Z Flip 7. Contrary to that belief, the Korean giant has only introduced a single-digit increase, which is puzzling to see, but according to The Korea Herald, this was done deliberately by the company. TM Roh explains below why he is choosing to lose money on the latest foldable smartphones, and his reasoning is justified.
“Pricing is always a key consideration with new product launches. There were significant innovations in this year’s models, which increased production costs. To expand foldable phones and democratize AI experiences, we decided to absorb those costs internally.”
Taking geopolitics into consideration, not to mention global inflation, it is no secret that it will cost Samsung more to mass manufacture the newer foldable devices. Additionally, using Qualcomm’s Snapdragon 8 Elite and Exynos 2500 will undoubtedly shoot up that bill, but Samsung has managed to keep a lid on the pricing for now. An unnamed industry source has said that the reason for not executing a price hike stems from the sales decline of the Galaxy Z Flip 6 from last year, with shipments down by 21 percent compared to the Galaxy Z Flip 5.
Huawei currently dominates the Chinese market in foldable smartphones, with the former Chinese giant shocking the industry and competition with the world’s first commercial tri-fold, the Mate XT. The company also achieved this feat while having its back against the wall because of the U.S. export controls. Samsung may have viewed Huawei as a major threat, and it may have controlled the pricing of its devices to get more traction in China, which houses the largest smartphone market by volume.
Additionally, the company is planning its own tri-fold handset, rumored to be called the Galaxy G Fold, with the possibility that it will be unveiled in the fourth quarter. However, with limited production reportedly happening in September, Samsung could launch it as a test to see how well the market responds.
News Source: The Korea Herald
